PZ Cussons Nigeria Plc delivered its strongest half-year performance in at least five years, returning to profitability as price increases, forex gains and asset disposals helped the consumer-goods maker weather the still-volatile environment of Africa's largest consumer market.
The Lagos-based company recorded a profit after tax of N21.4 billion for the six months ended November 30, reversing a loss of N7.0 billion a year earlier, according to unaudited results recently filed with the Nigerian Exchange.
Revenue increased by 33 per cent to N127.9 billion, reflecting higher product pricing and improved sales volumes in soaps, detergents and personal care brands.
Also read: PZ Cussons halts African exit plan as Nigeria's economic outlook brightens
Operating profit widened to N38.0 billion from a loss of N3.3 billion a year earlier, boosted by a N8.6 billion foreign exchange gain and a sharp increase in other income, which reached N14.8 billion, mainly from property disposals and rental income.
The sharp uptick in PZ Cusson Nigeria's growth trajectory comes after the company's recent suspension of its exit from the African market, citing new prospects in the continent, especially its Nigerian subsidiaries.
The recommitment of its business operations has seen its share price rise 18 per cent over the past four weeks, according to data analytics platform African Exchange, placing it as the 20th best performer on the local bourse.
The over 120-year-old company began reporting its profit at the end of the 2025 financial period, which ended May 31, 2025, recording a net income of N5.5 billion. This represents a sharp reversal from the net deficit of N76 billion recorded in FY2024, a change of 107 per cent.
This extended the profit streak to the first quarter of 2026 as the consumer goods maker, a subsidiary of UK-listed PZ Cussons Group, recorded a net profit of N13.49 billion for the three months ended August 31, contrasting with a loss of N4.65 billion in the same period last year.
Also read: PZ Cussons halts plans to sell Nigerian, other African subsidiaries
Shareholders' equity has become positive
Earnings rebounded in the period under review and this translated into a stronger balance sheet, with shareholders' equity returning to positive territory at N4.1 billion from negative equity at the end of the last financial year.
The change is expected to boost its dividend payout prospects after the company suffered a massive devaluation of the Naira and skyrocketing inflation. Earnings per share increased to N5.17, compared to a loss of N1.67 a year ago.
However, cash flow painted a more nuanced picture. Net cash used in operating activities was N1.47 billion compared to N40.7 billion inflows last year, reflecting higher working capital absorption in the form of expansion of inventory and receivables amid rising input costs.
That pressure was partly offset by investment activities, which generated N13.9 billion in net cash, mainly driven by proceeds from the sale of fixed assets. Financial cash outflow totaled N11.7 billion as the company continued to reduce borrowings including repayments to related parties.
Overall, cash and cash equivalents increased to N45.5 billion from N40.7 billion at the beginning of the period, supported by cash balances and foreign exchange gains on sale of assets.
Also read: PZ Cussons Nigeria reaches N13.5bn profit on 139% FX gain
While the results indicate a clear turnaround after years of currency-driven losses, analysts say sustainability will depend on the company's ability to convert accounting profits into operating cash, manage higher payments of N109.9 billion and maintain margins as Nigerian consumers remain under pressure with inflation falling for the eighth consecutive month to 14.45 per cent in November 2025.
PZ closed its last trading day, Wednesday, December 24, 2025, at N47.10 per share on the NGX, registering a gain of 0.2 per cent over its previous closing price. PZ Cussons has gained 93.8 per cent since January, ranking it 52nd on the bourse in terms of year-to-date performance.
