PZ Cussons PLC has released its first quarter ended Q1 August, 2016 showing the company recorded a net loss of NGN1,5 billion.
This is a huge crash in profitability when compared to its NGN427 million recorded last within the same quarter last year.
Revenue for the year rose by 12% to NGN16,7 billion from NGN14,9 billion in the previous year. Cost of sales marginally increased by 1.2% to NGN10,9 in 2016 to NGN10,8 billion last year.
While the company’s operating profit for the year increased increased by 124% from NGN624 million last year to NGB2,2 billion.
However, the major problem that led to the huge loss was a massive foreign exchange loss as a result of the devaluation of the Naira (NGN). The company recorded NGN4,7 billion in Forex impairment as opposed a mere NGN14 million recorded last year.
At the the period, PZ Cussons current ratio is still healthy. The company’s current liabilities stood at NGN35,5 billion versus its total current liabilities NGN53,3 billion.
PZ Cussons also reported that its net loans and payables increased to NGN17 billion versus NGN14 billion reported with the same period last year.