PZ Cussons Nigeria reports USD 9.2M profit in Q1 fiscal year 2026
NIGERIA – PZ Cussons Nigeria Plc has reported an impressive financial turnaround for the first quarter of its 2026 fiscal year, ending August 31, 2025, with a net profit after tax of NGN 13.49 billion (approximately USD 9.2 million).
The company’s revenue rose significantly by 48% year-over-year to NGN 59.01 billion (USD 40.2 million), already accounting for 28% of the total revenue for the prior full year.
Operating profit remained stable at NGN 21.59 billion (USD 14.7 million), representing a 14% increase compared to the prior year, and increased the operating profit margin to approximately 37%.
However, the gross profit margin narrowed from 31% to 27% due to the cost of sales increasing at a faster rate than revenue.
Gross profit increased to NGN 16.1 billion (USD 11 million) from NGN 12.23 billion.
A significant boost to the first quarter results came from other income, which rose to NGN 12.175 billion (about USD 8.3 million), primarily driven by the sale of three properties and revenue from scrap sales.
Interest expenses decreased by 84% to NGN 221 million (USD 150,000), primarily due to an 18% reduction in total borrowings to NGN 58.39 billion (USD 39.8 million), with the majority still owed to the parent company, PZ Cussons Holdings Limited, UK.
Despite a positive earnings performance, the company experienced a negative operating cash flow of NGN 12.46 billion (USD 8.5 million), mainly attributable to rising inventory and receivables, which points to working capital pressure.
Investing activities generated cash inflows of NGN 11.98 billion (USD 8.2 million) due to asset sales, while financing activities recorded net outflows of NGN 10.94 billion (USD 7.5 million), primarily reflecting debt repayments.
On the balance sheet, total assets increased to NGN 183.49 billion (USD 125 million) from NGN 168.90 billion at the end of the previous fiscal year, driven by capital asset sales and operational growth.
Liabilities slightly increased to NGN 187.34 billion (USD 127.6 million), but the company’s equity deficit narrowed substantially from NGN 17.34 billion to NGN 3.85 billion, signalling stronger financial health.
Management emphasised the importance of operational excellence and cash flow management going forward, noting that non-recurring gains from asset disposals contributed to part of this quarter’s profit surge.
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