PZ Cussons Nigeria Plc opened its 2025/26 financial year with a strong rebound, reporting a profit before tax of N21.541 billion for the first quarter ended August 31, 2025.
The result marks a sharp turnaround from the N5.22 billion loss before tax in the same quarter last year and already surpasses the company’s full-year profit of N16.66 billion for the 2025 financial year.
Profit after tax stood at N13.486 billion, compared to a loss of N4.648 billion in Q1 2024/25. Earnings per share rose to N3.29, higher than the N2.32 posted for the entire 2025 financial year.
The unaudited results showed that revenue grew by 48% year-on-year to N59 billion, supported by stronger sales performance. Other income rose significantly to N12.175 billion, largely due to N11.965 billion from the disposal of three properties earlier classified as assets held for sale, alongside scrap sales.
Finance costs provided further relief, with interest expenses dropping 84% year-on-year to N221 million, down from N1.4 billion in Q1 last year and N3.6 billion in full-year 2025. Total borrowings declined by 18% to N58.386 billion, though the bulk remains owed to the parent company, PZ Cussons (Holding) Limited UK.
Despite the profit surge, cost pressures persisted. Cost of sales increased faster than revenue, causing gross profit margin to contract to 27% from 31%. Overheads remained high, absorbing more than 63% of gross profit. Still, operating profit reached about N22 billion, 14% higher than last year’s full operating profit, lifting operating margin to around 37%.
On the balance sheet, total assets rose 8.6% to N183.487 billion, driven mainly by current assets. Retained losses declined to N25.72 billion, easing negative shareholders’ funds to N3.855 billion. Analysts note that if current profitability is sustained, PZ Cussons could return to positive equity by Q2.
However, trade and other payables climbed to N117 billion from N105 billion in May 2025, reflecting working capital strain. While property disposals boosted earnings this quarter, long-term balance sheet repair may still require capital raising or dividend adjustments.
The company’s share price closed September at N34.50, up 42% year-to-date from N24.30, reflecting renewed investor confidence in its turnaround prospects.
