…Q-4 revenue rose 22% year-on-year to N63.24 billion
…Profit after tax rose 388% to N9.99 billion
FRI JULY 03 2026-theGBJournal| PZ Cussons Nigeria Plc reported a sharp improvement in profitability for the financial year ended May 31, 2026, with fourth-quarter profit rising almost fourfold as stronger product volumes, strategic price increases and robust demand across its consumer and electrical businesses outweighed higher operating costs and a foreign-exchange loss.
The maker of Premier, Morning Fresh and Imperial Leather products said revenue expanded 22% from a year earlier, underscoring its ability to defend market share despite Nigeria’s challenging consumer environment marked by elevated inflation, high borrowing costs and currency volatility.
Revenue for the fourth quarter rose 22% year-on-year to N63.24 billion, bringing full-year revenue to N260.46 billion. The increase reflected a combination of healthy volume growth and pricing initiatives, suggesting demand remained resilient despite continued pressure on household purchasing power.
Cost of sales increased broadly in line with revenue, climbing 21% to N44.00 billion in the quarter and N187.19 billion for the full year.
Although gross profit declined to N9.24 billion in the fourth quarter from N15.55 billion a year earlier, cumulative gross profit for the year reached N73.27 billion, highlighting the company’s ability to preserve profitability despite higher input costs.
Operating expenses remained elevated as the company continued investing behind its brands and distribution network.
Selling and distribution expenses rose to N7.53 billion from N4.95 billion a year earlier, while administrative expenses surged to N8.48 billion, reflecting inflationary pressures and increased operating costs.
Trade receivable impairment remained relatively contained at N174.96 million, compared with N45.96 million in the corresponding period last year.
A significant swing in other income helped cushion the impact of higher operating expenses.
Other income jumped more than twelvefold to N6.43 billion, compared with N531.18 million in the prior-year quarter, partly offsetting a foreign exchange loss of N677.28 million.
The previous year’s quarter had benefited from a foreign exchange gain of N7.75 billion, illustrating how exchange-rate movements continue to influence corporate earnings in Nigeria.
Operating profit climbed to N8.81 billion in the fourth quarter from N1.27 billion a year earlier, representing a more than threefold increase.
The improvement indicates stronger underlying operating performance despite the tougher cost environment and the absence of the sizeable foreign-exchange gains recorded in the previous year.
Finance costs also eased considerably. Interest expense declined to N217.11 million from N965.44 million a year earlier, while interest income remained broadly stable at N526.11 million, contributing to stronger bottom-line performance.
Profit before tax increased 364% to N9.12 billion from N1.69 billion in the corresponding quarter of 2025. Lower tax charges further boosted earnings, with income tax expense falling sharply to N88.58 million from N2.91 billion.
As a result, fourth-quarter profit after tax rose 388% to N9.99 billion, compared with N1.22 billion a year earlier. Basic and diluted earnings per share increased to 2.4 kobo from 0.4 kobo, reflecting the substantial improvement in profitability.
The results suggest PZ Cussons Nigeria is benefiting from a strategy focused on premium brand investment, wider distribution and disciplined pricing, enabling it to protect margins while capturing additional market share.
The combination of volume-led growth and price optimisation is particularly notable given persistent macroeconomic pressures, including inflation, elevated energy costs and exchange-rate volatility that continue to challenge manufacturers across Nigeria.
In a statement accompanying the results, the board said the performance demonstrated “the strength of our business, the equity of our brands, and the discipline of our execution,” adding that the company successfully navigated a rapidly changing operating environment to deliver growth in both revenue and profit.
The board attributed the performance to stronger volumes across both its consumer and electrical businesses, supported by sustained investment in key brands and improvements in route-to-market capabilities.
Those initiatives, it said, translated into market share gains, broader household penetration and robust volume growth, positioning the company to sustain momentum into the new financial year despite continued economic uncertainty.
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