PZ Cussons Nigeria Plc has reported a substantial financial turnaround, announcing a pre-tax profit of N37.9 billion for the half-year period ending November 30, 2025. This marks a significant reversal from the N5.5 billion pre-tax loss recorded in the corresponding period of 2024, signaling a robust recovery for the consumer goods giant. The impressive performance was largely attributed to stronger revenue streams, substantial foreign exchange gains, and a strategic reduction in finance costs, which collectively propelled the company back into profitability.
The remarkable rebound underscores a period of strategic financial management and operational efficiency. A significant portion of this recovery materialized in the second quarter, contributing N16.3 billion to the overall half-year earnings. This positive trajectory highlights the company’s ability to navigate challenging economic conditions, transforming a substantial deficit into a healthy profit within a single fiscal year.
Driving this strong financial showing was a robust top-line performance, with revenue climbing to N127.9 billion for the six months ending November 2025. This represents a substantial 32.59% increase compared to the N96.4 billion generated in the previous year. The growth was broad-based, fueled by vigorous demand across PZ Cussons’ diverse product portfolio, including its Hygiene, Baby, Beauty, Food & Nutrition, and Electricals segments.
Despite an increase in the cost of sales, which rose by 34.80% to N93.6 billion, the company successfully maintained a solid gross profit margin. Gross profit for the period stood at N34.2 billion, reflecting a commendable 26.91% year-on-year rise. This indicates effective cost management strategies and pricing power, allowing the company to absorb rising input costs while still enhancing its profitability.
Operational improvements also played a critical role in the positive results. While selling and distribution expenses increased by 46% to N11.6 billion, administrative expenses saw a slight reduction, falling from N8.08 billion in 2024 to N8.02 billion. Crucially, PZ Cussons recorded a significant foreign exchange gain of N8.6 billion, a stark contrast to the N15.1 billion loss experienced in the prior year, demonstrating improved currency hedging or favorable market movements.
A substantial surge in ‘other income’ further bolstered the company’s financial health, reaching N14.7 billion – an extraordinary 1,424.05% increase from the previous period. This remarkable growth was primarily driven by a N14.2 billion profit derived from the disposal of fixed assets, supplemented by contributions from rental income and scrap sales. This strategic asset management contributed significantly to the overall operating profit, which swung from a N3.3 billion loss in H1 2024 to a N37.9 billion profit.
The group’s financial strategy also focused on reducing its debt burden, leading to a sharp decrease in finance costs. These costs plummeted to N473.7 million, a significant reduction from N2.7 billion in the corresponding half-year period. Coupled with interest income of N431.4 million, this financial discipline directly supported the impressive rebound in pre-tax profit. After accounting for N16.4 billion in income tax, the profit after tax settled at N21.4 billion.
PZ Cussons’ balance sheet also reflected signs of strengthening, with total assets rising by 6.23% to N179.4 billion from N168.9 billion in the prior period. Key current assets included N66.2 billion in inventories and N45.5 billion in cash and cash equivalents, indicating healthy liquidity. Most notably, total equity rebounded positively to N4 billion, a substantial improvement from a N17.3 billion loss previously reported.
While retained earnings remained negative at N18.2 billion, this figure represents a significant improvement from the N38.7 billion loss recorded earlier, signaling progress towards restoring shareholder value. Concurrently, the company successfully reduced its total obligations from N186.2 billion to N175.3 billion, further strengthening its financial position and reducing overall leverage.
The market has responded positively to PZ Cussons Nigeria’s revitalized performance. As of the trading day ending December 23, 2025, the company’s shares on the Nigerian Exchange (NGX) have delivered an impressive 93.42% year-to-date return, reflecting investor confidence in its strategic direction and financial recovery.
