In 2003, PZ Cussons acquired the Original Source personal care brand, while in 2004; it acquired the Charles Worthington hair care brand.
PZ had 3.97 billion shares outstanding, with shareholder funds standing at N46.5 billion at the end of November 2013.
Financial Performance for Six Months to November 2013
PZ grew gross revenue by 4.7 percent to N32.4 billion for the six month period to November 2013 as against N31.0 billion recorded in the corresponding period H1: 2012.
Gross profits were up 19.8 percent to N8.9 billion in the half year to November 2013 compared to N7.7 billion recorded last year; hence, gross profit margin climbed to 27.4 percent as against 24.8 percent H1: 2012.
The improvement in gross margins were driven by effective cost control mechanism which culminated in cost of sales rising minutely by 0.74 percent to N23.5 billion in the period under review to NN23.3 billion last year.
PZ Cussons’ profit before tax (PBT) in the six months period through November 2013 spiked by 50 percent to N3 billion as against N2 billion recorded half year to November 2012.
The company is in an advantageous position to survive in the face of falling selling prices, rising cost of production or declining demand as Net profit margin improved to 9.25 percent from 5.1 percent last year.
Operating expenses in the period under review increased by 8.9 percent to N6.1 billion.
The expenses ratio rose to 19 percent compared to 18 percent in the earlier period.
PZ Cussons’ finance cost soared by 376 percent to N223.6 million in the review period from N80.8 million recorded last year.
The Return on Average Equity ROaE climbed to 4.9 percent from 3.2 percent for HY 2013, while Return on Average Assets ROaA rose to 3.3 percent from 2 percent for HY 2013.
Earnings per share EPS increased by 243.3 percent to 58k from 17k in HY 2012.
Share Performance and Outlook
The share price of PZ Cussons increased by 37.7 percent to close at N37.07 on the floor of the Nigeria Stock Exchange on the 31st of January, 2014.
The current P/E ratio of the company at the same day was 30.70 xs, while it had a price to sales ratio of 2.0.
PZ Cussons had a market capitalization of N149.6 billion as at January 31 2013.
By: BALA AUGIE
