PZ Cussons Nigeria Reports First Annual Loss In Years Amid Naira Depreciation
PZ Cussons Nigeria posted its first annual loss since 2020 in the financial year ended 31 May 2024, according to its audited accounts released on Friday.
Details showed that loss after tax rose to N76 billion and foreign currency obligations soared to a record.
The Nigerian operation of the Manchester-based British consumer goods manufacturer PZ Cussons Plc took a hit from a surge of more than 3,000 per cent in its foreign exchange loss from N5 billion to N157.9 billion within the review period.
Nigeria is PZ Cussons’ biggest and most diverse single market, according to the company’s website.
The huge foreign exchange loss further compounds the financial difficulty of the maker of widely-used homecare and body care products like Morning Fresh, Canoe and Premier Cool, which fell into a negative asset position in the second quarter, when its shareholders’ fund turned negative at N23.2 billion.
That figure went 18.7 per cent higher in the period under review.
PZ Cussons Nigeria relies heavily on imports for its raw materials, and transactions with international trade partners, some of which it is indebted to. This increased its current liabilities to N119.3 billion from N94.7 billion a year earlier.
Source:- Premiumtimesng