Against the backdrop of stress in the Nigerian’s economy, PZ Cussons Nigeria’s recently released first quarter result for the period ended August 30, 2016 has sent a signal of more challenged performance working towards reversing losses.
The result released by the Nigerian Stock Exchange (NSE) on Tuesday October 04, showed a challenged quarter as the operating environment continued to bite harder on the company’s earnings and weakening prospects.
The result which may trigger downward reversal of forecast by market analysts on the company showed that even as revenue in the first quarter grew by 12 per cent year on year. The company’s revenue stood at N16.75billion by the end of the first quarter.
Operating profit for the first quarter closed the first quarter at N2.2billion, reflecting growth by 254 per cent year on year. Loss before tax [peaked at -N2.4billion, this was largely driven by N-4.7 billion forex losses. PZ Cussons loss after tax for the first quarter closed the period at -N1.58bn.
Based on the above results, a cross section of shareholders have started considering stay of their investments going by unabated operating challenges the company is exposed to, which has continued to clean up its earnings via forex exposures and higher operating expenses.