PZ Cussons Nigeria Plc (NGX: PZ.ng) posted a strong rebound in profitability for the first quarter of its 2025/26 financial year, helped by higher revenues and a one-off gain from the disposal of non-core assets.
One of Nigeria’s largest fast-moving consumer goods (FMCG) companies, it is a subsidiary of the UK-based multinational PZ Cussons Plc, listed on the London Stock Exchange.
Revenue rose 48% y/y to NGN59.01bn ($36.9mn) in the three months to August 31, 2025, while operating profit reached NGN21.59bn ($13.5mn), compared with a loss of NGN4.10bn a year earlier. The company reported a profit after tax of NGN13.49bn ($8.4mn), versus a NGN4.65bn loss in Q1 2024/25.
The improvement was driven partly by an NGN11.91bn ($7.4mn) one-off profit on the sale of depot facilities, in line with its strategy to divest non-core assets. Foreign exchange gains also supported earnings, totalling NGN3.57bn ($2.2mn), reversing a loss of NGN9.28bn in the prior-year quarter.
Despite higher profitability, operating cash flow was negative at NGN12.46bn ($7.8mn), as inventory and receivables increased sharply. Investing activities generated inflows of NGN11.98bn ($7.5mn), mainly from asset sales, while financing outflows of NGN10.94bn ($6.8mn) reflected debt repayments.
The company’s total assets rose to NGN183.49bn ($114.7mn), and total liabilities edged up to NGN187.34bn ($117.1mn). Equity improved from a deficit of NGN17.34bn to NGN3.85bn negative, reflecting the strong profit.
Management appears focused on optimising its asset base and restoring balance-sheet strength, but the reliance on one-off gains and ongoing working-capital pressure underscore the need for tighter cash conversion and continued focus on operational efficiency. Analysts note that the strong Q1 profit was largely driven by one-off asset sales rather than recurring operations.
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