PZ Cussons Nigeria Plc posted a strong financial performance for the first half of its 2026 financial year, with pre-tax profit surging by 364.1% year-on-year to N77.32 billion, compared with N16.66 billion recorded in the corresponding period of 2025.
Profit after tax also recorded robust growth, rising by 387.7% to N49.10 billion from N10.07 billion in the same period last year.
On a quarterly basis, the company reported a pre-tax profit of N9.12 billion in the fourth quarter, up from N1.69 billion in the corresponding quarter of 2025. It also returned to profitability after tax, posting N9.99 billion compared with a loss of N1.22 billion recorded a year earlier.
Commenting on the results, the company said the performance reflected the strength of its brands and disciplined execution despite a challenging operating environment.
“Our performance for the FY26 financial year is a testament to the strength of our business, the equity of our brands, and the discipline of our execution.
“Despite operating in a constantly changing business environment, we delivered growth in both revenue and profit, underscoring the resilience of our portfolio and the effectiveness of our strategic priorities.”
Revenue increased by 22.5% to N260.46 billion from N212.63 billion in the first half of 2025, while the cost of sales rose by 20.8% to N187.19 billion from N154.93 billion.
As a result, gross profit climbed 27% to N73.27 billion from N57.71 billion, while operating profit recorded much stronger growth of 307.2% to N77.06 billion, up from N18.92 billion in the previous year.
Earnings per share also rose significantly by 413% to N11.80 from N2.30. Meanwhile, total assets declined by 4.6% to N161.13 billion from N168.90 billion, while cash and cash equivalents edged up 1.6% to N41.32 billion from N40.66 billion.
The company attributed its revenue growth to higher sales volumes and pricing initiatives, supported by improved performance across its electrical and consumer businesses, continued investment in its brands, and enhanced route-to-market capabilities.
Gross profit outpaced revenue growth, improving the gross margin to 28.1% from 27.1%, indicating stronger profitability after direct production costs.
A major contributor to earnings was the sharp increase in operating profit, supported by a turnaround in foreign exchange performance. During the period, PZ Cussons recorded a foreign exchange gain of N11.84 billion, compared with a foreign exchange loss of N7.78 billion in the corresponding period of 2025.
Other income also rose sharply to N39.82 billion from N1.80 billion, largely due to proceeds from the sale of three properties, providing a significant boost to operating earnings.
Although operating expenses remained under pressure, the increases were outweighed by stronger revenue and one-off gains. Selling and distribution expenses increased to N26.51 billion from N17.90 billion, while administrative expenses rose to N21.07 billion from N14.70 billion. Impairment charges on trade receivables also increased to N278.86 million from N203.56 million.
Finance costs, however, declined significantly to N965.44 million from N3.63 billion, reflecting substantially lower borrowings during the period.
The combination of higher revenue, improved margins, foreign exchange gains, increased other income, and lower finance costs lifted pre-tax profit to N77.32 billion, while profit after tax closed at N49.10 billion despite a higher tax expense of N28.22 billion.
The company significantly strengthened its balance sheet during the period, reducing total borrowings by 91.7% to N5.90 billion from N71.27 billion a year earlier.
Notably, the parent company’s borrowings were completely eliminated, falling from N63.87 billion to zero, a move that contributed to lower finance costs and helped restore positive shareholders’ equity.
Total equity improved to N70.57 billion from a negative N17.34 billion in the prior year, while retained earnings recovered to N8.05 billion from a deficit of N38.77 billion.
PZ Cussons maintained positive cash generation during the period, although operating cash flow weakened compared with the previous year. Net cash generated from operating activities declined to N26.06 billion from N40.66 billion.
Investing activities generated a net cash inflow of N29.10 billion, largely driven by N32.95 billion realised from the sale of property, plant and equipment.
Meanwhile, financing activities recorded a net cash outflow of N60.26 billion, mainly reflecting N57.79 billion used to repay borrowings as the company continued to reduce its debt profile.