PZ Cussons Nigeria’s H1 2023/2024 losses hit N73.8bn

Bisola David
Bisola David
PZ Cussons Nigeria Plc has convened an extraordinary general meeting of shareholders following a N73.8 billion loss that reduced the value of its net assets.

The financial results for the second quarter of the fiscal year 2023/2024, which ended on November 30, 2023, have been released by PZ Cussons Nigeria Plc.

According to The Times, When compared to the N9.3 billion pre-tax profit realized in the same time of the previous fiscal year, the company’s pre-tax loss of N73.8 billion represented a notable decline of 895%.

The group’s pre-tax loss in Q2 2023/2024 was N35.2 billion, a 548% year-over-year decrease from the N7.8 billion pre-tax profit realized in the same quarter of the previous fiscal year.

The group reported a half-year revenue of N68.1 billion in H1 2023/2024, which represents a 19% rise over the N57.3 billion revenue recorded during the equivalent period in 2022/2023, according to the company’s unaudited financial figures for Q2 2023/2024.

The group reported revenue of N37.0 billion for the quarter that ended on November 30, 2023, a 24% increase over the same period in the previous fiscal year.

PZ Cussons Nigeria Plc reported a net profit of N21.9 billion for the first half of 2023–2024, up 61% from the N13.6 billion reported for the same time in the previous fiscal year.

Nevertheless, the business reported an operating loss of N77.0 billion in H1 2023/2024 as a result of a foreign exchange loss of N87.1 billion. This represented a staggering 5224% year-over-year fall from the N1.5 billion operational profit reported in H1 2022/2023.

PZ Cusson Nigeria reported negative equity of N23.2 billion as of Q2 2023/2024 because the group’s cumulative losses had affected the business’s retained earnings as of the close of the fiscal year 2022/2023.

The group’s total liabilities at the end of the 2022/2023 fiscal year increased by 51% to N178 billion during the second quarter of 2023/2024.

The rise in borrowings, together with trade and other payables, is mostly to blame for this increase.

At the conclusion of Q2 2023/2024, the group’s borrowings were N59.2 billion, a 147% increase over the N24.0 billion recorded at the end of FY 2022/2023.

A sizeable chunk of the N59.2 billion reported borrowing balance, N35.6 billion, is attributable to an interest-free loan of $40.26 million from PZ Cussons Nigeria’s parent business, PZ Cussons (Holding) Limited.

The impact of the Naira depreciation has led to an increase in the loan balance from N18.7 billion to N35.6 billion as of the second quarter of the fiscal year 2023/2024.

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