PZ Cussons, a maker of personal healthcare and consumer goods, has made some headway in trimming critical cost lines
that hindered profit improvement in 2021. The cost-saving plus improving sales revenue enabled the company to push profit by 113 percent in its nine months ended, February 2022.
Findings by BusinessDay showed pushing up sales revenue and pushing down cost of sales were the key strategy that PZ Cussons engaged to drive a turnaround in the second quarter. With these changes, the company’s management is showing some progress in addressing the constraints that affected profit capacity over the preceding three years.
Revenue grew 24 percent to N74.54 billion in Q3’2022 from N59.98 billion in its third quarter of 2021.
According to its financial books, PZ Cusson was able to increase its revenue, other income recorded the highest in six years while the company was able to cut down its administrative, selling, and distribution expenses.
In this article, there are five charts that give insights into PZ Cussons growth over the past five years.
PZ Cusson recorded its highest profit in February 2020, with the lowest third-quarter profit in 2019.
The company saw its profit surge 113 percent to N3.07 billion from N1.44 billion in its nine months ended, February 2021.
Profit increased to N3.52 billion in Q3’2020 from N0.81 billion in Q3’2019.
The consumer goods company recorded N1.34 in February 2018, a 16 percent drop from N1.60 billion in the prior year.
PZ Cusson revenue recorded its highest third quarter revenue in 2022, while the least was recorded in February 2020.
Revenue stood at N74.54 billion, a 24 percent increase from N59.98 billion in February 2021.
The company’s profit dropped just 0.4 percent to N54.74 billion in Q3’20 from N55 billion in the prior year.
PZ’s revenue jumped by 10 percent to N63.26 billion from N57.15 billion in February 2017.
PZ Cusson saw its other income jump to N2.59 billion from N0.26 billion in February 2021.
Read also: PZ Cusson’s profit jumps by 458% to N5.6bn on rising sales
The company’s other income dropped 84.6 percent to N0.14 billion in Q3’2020, coming from N0.91 billion in Q3’2019.
Other income increased to N0.81 billion in February 2018 from N0.15 billion in the prior year.
Cost of sales
PZ’s cost of sales increased to N21.52 billion, 31 percent from N16.43 in February 2021.
The cost of sales surged to N46.29 billion in Q3’20 from N42.43 billion in the previous year.
The consumer goods company saw its cost of sales rise to N45.02 billion from N37.93 billion in Q3’2017.
Selling and Distribution expenses
PZ Cusson was able to reduce its selling and distribution expenses by 63 percent to N2.87 billion from N7.81 billion.
Selling and distribution expenses stood at N7.87 billion, coming from N7.96 billion in February 2019.
PZ Cusson recorded N6.93 billion in the third quarter of 2018 from N6.70 billion in the prior year.
PZ Cussons administrative expenses dropped 13 percent to N1.46 billion in Q3’2022 from N1.68 billion in the previous year.
Administrative expenses stood at N4.45 billion as against N3.36 billion recorded in February 2019.
The company’s administrative expenses increased to N5.57 billion in Q3’2018, coming from N4.36 billion.
Trade & other receivables
PZ Cusson trade and other receivables dropped 15 percent to N12.55 billion from N14.90 billion in February 2021.
The company’s trade and other receivables rose to N15.58 billion in Q3 ’20 from N15.17 billion in Q3’19.
Trade and other receivables increased to N17.85 billion in Q3’18 from N17.22 billion in the previous year.