Grows profit by 109%

PZ Cussons (Nigeria) Plc rode on the back of improved cost management and internal efficiency to double net earnings in the immediate past year, prompting the board to recommend distribution of N2.22 billion as dividends to shareholders.
Audited report and accounts of PZ Cussons for the year ended May 31, 2013 showed that while sales slipped by 1.12 per cent, profits before and after tax jumped by 77.6 per cent and 110 per cent respectively. The improvement in the bottom-line impacted on the underlying returns to shareholders as earnings per share increased from 61 kobo in 2012 to N1.23 in 2013.
Turnover closed May 2013 at N71.34 billion as against N72.15 billion recorded in 2012. Profit before tax meanwhile rose from N4.31 billion to N7.65 billion. Profit after tax also doubled from N2.54 billion to N5.32 billion.
The board of directors of PZ Cussons has recommended payment of N2.22 billion as cash dividends, representing a dividend per share of 56 kobo, an increase of 30 per cent on 43 kobo paid for the previous year.
The performance in 2013 represented a major recovery for the fast moving consumer good company, which had suffered significant decline in the previous year.
Audited report and accounts for the year ended May 31, 2012 had shown turnover of N72.16 billion as against N65.9 billion in 2011. Gross profit however dropped to N16.18 billion as against N18.45 billion. Profit before tax also halved to N4.31 billion compared with N8.03 billion in 2011 just as profit after tax dwindled from N5.7 billion to N2.5 billion.
PZ Cussons appeared to have benefitted from extensive cost restructuring and internal efficiency management.
With costs constraints and efficiency issues becoming evident in its performance, the global conglomerate had started global restructuring of its operations including closure of manufacturing operations in several countries and concentration in some countries including Nigeria.
The global restructuring project was sequel to high costs of operations that have increasingly impacted on the global profitability of the conglomerate.
According to a document on the global restructuring operations with details for West Africa, PZ Cussons group developed the global restructuring programmes to ensure that its supply chain cost base remains at a competitive level given sustained rise in raw material costs together with significant wage inflation in emerging markets.
The report indicated that PZ Cussons, which holds 66.81 per cent in PZ Cussons (Nigeria) Plc, plans to close down its manufacturing facilities in Ghana and concentrate manufacturing operations in Nigeria.
With the impending closure of the Ghanaian manufacturing facilities, Nigeria and other unidentified third parties will provide supply to Ghana, a major win for Nigeria. Manufacturing operations create better employment opportunities, and will further complement the growing human resources for marketing activities.
“We will use the opportunity to make Nigeria a centre of excellence in Africa,” the document indicated.

The group will also focus on reducing significantly its overhead at a number of other manufacturing facilities.
“We believe the benefits of this project will be seen in the new financial year through lower supply chain overheads, wage inflation mitigation as well as reduction in high capital maintenance cost that would have been associated to the closed or restructured facilities. It will ultimately show an improved performance and higher returns on investments,” the document had indicated.
Besides, the global restructuring would see the group close down its manufacturing facilities in Australia and restructure that of Poland as it seeks to move to a variable cost model for its developed market homecare businesses. Just like the emerging markets, supplies will be outsourced to third parties.
PZ Cussons has manufacturing plants in Ilupeju, Ikorodu; both in Lagos State and Aba, in Abia State. The Nigerian operations include manufacturing and marketing of soaps, detergents, health and beauty products, electrical goods and nutritional products. More than 77,000 Nigerian individual and institutional investors hold equity stakes in the conglomerate.
 

http://thenationonlineng.net/new/pz-cussons-grows-profit-by-109/

Bad for them, good for us. Ghana shouldn't try to rub shoulders with Nigeria in any way. I'm really loving the good news coming up lately,.,

braine: Bad for them, good for us. Ghana shouldn't try to rub shoulders with Nigeria in any way. I'm really loving the good news coming up lately,.,

PZ didnt do enough calculation before siting their company in Ghana, dem no know say Ghana people no dey bath, Ghana no need PZ products.

Under past administrations, we used to hear of companies closing down their Nigeria operations and relocating to Ghana. Under GEJ, we hear of companies closing down their factories in other countries and relocating to Nigeria.

Who said GEJ is not working?

Sunny_bobo: Under past administrations, we used to hear of companies closing down their Nigeria operations and relocating to Ghana. Under GEJ, we hear of companies closing down their factories in other countries and relocating to Nigeria.

Who said GEJ is not working?

You don't have to politicize this. GEJ had nothing to do with it.

And tomorrow, someone will be praising Ghana of having better economy than Nigeria.

boron10:
You don't have to politicize this. GEJ had nothing to do with it.

Liar

gramci:

Liar

Whatever

eddiebruk:

PZ didnt do enough calculation before siting their company in Ghana, dem no know say Ghana people no dey bath, Ghana no need PZ products.

The battle line is drawn.
*dancing alingo*

Sunny_bobo: Under past administrations, we used to hear of companies closing down their Nigeria operations and relocating to Ghana. Under GEJ, we hear of companies closing down their factories in other countries and relocating to Nigeria.

Who said GEJ is not working?

Took the words right out of my mouth...

boron10:
You don't have to politicize this. GEJ had nothing to do with it.

YES! He didn't do anytin. It just kind of 'happened' like that, ain't?.... Ekpoko

boron10:
You don't have to politicize this. GEJ had nothing to do with it.

are you a nigeria? Have you been following the economic policy of gej administration? E.g Inproved rail facilities to reduce or eliminate the cost of transportation. et al.
.
Bottom line.
Some id0tic m0r0n from south west will soon come and tell us other wise.

This is just the beginning! More to come!
Fresh Air!
Abagworo I hope you are happy with this news oh!

GSK AND CADBURY are about closing down their parent compay and moving it to nigeria but the nigeria shareholders are fighting tooth and nail to stop them for reason best known to them.

Sunny_bobo: Under past administrations, we used to hear of companies closing down their Nigeria operations and relocating to Ghana. Under GEJ, we hear of companies closing down their factories in other countries and relocating to Nigeria.

Who said GEJ is not working?

Hope this does not make front page.

Hope this does not make front page.Cos thread is a dissing thread.

like it or not, the improved economic system of Nigeria is doing its desired work of attracting back investors. Improved power & transport infrastructures. The truth be told, if not for past bad leaders of Nigeria, no business entity looking to come to Africa will overlook Nigeria, you cant joke with a people with market size of 150million plus even if their skins are as black as crude, we'll surely get there.

Biko, tell them i have land for sale oo!

They want to come to Nigeria simply because of the large market available . I hope the government policies does not affect them. Nice development anyway!

berem: They want to come to Nigeria simply because of the large market available . I hope the government policies does not affect them. Nice development anyway!

But when Michelin and co relocated to Ghana from Nigeria few years ago, it was because Ghana has "large market available" ?. I can imagine how difficult it is to sail against the storm.

And for government policies affecting them, businesses are run by professionals, not by empty brains. To think about all those things, including many more that your mind cannot capture yet is all they do when they are locked up in the boardroom.

berem: They want to come to Nigeria simply because of the large market available . I hope the government policies does not affect them. Nice development anyway!

stop talking like an illiterate.
Didn't we have a large market before, when companies were moving away from Nigeria?

solomon111: stop talking like an illiterate.
Didn't we have a large market before, when companies were moving away from Nigeria?

Is it not interesting, my brother?

berem: They want to come to Nigeria simply because of the large market available . I hope the government policies does not affect them. Nice development anyway!

Come on SHUT UP that ya mouth tha, fast. Didn't Nigeria hv 'a large population' when these companies where leaving in drones?? You just wait till all of them come back, including Michelin ati Dunlop..

I hope UNILEVER will follow soon.

I knew these companies would relocate back to Nigeria, once it started to make economic sense.....and now it does.

They did not keave Nigeria because they hated Nigeria, it was the prevailing business climate at that time.

Nigeria has to strike while the iron is hot, and create a favouirable market for business to thrive, whether Nigerian or foreign.

Ghana still has its attraction for the investor, as does every other African nation.

Every day the sleeping giant moves a little more.....up Nigeria, and I mean NORTH, SOUTH, EAST AND WEST!

It shows d inability of our government to develop and manufacture local content....it shows Ghana are encouraging and developing dere indigenous companies instead of encouraging foriegn companies.

Now imagine how many more of this would happen once power is to stabilise...

Dr Walter: It shows d inability of our government to develop and manufacture local content....it shows Ghana are encouraging and developing dere indigenous companies instead of encouraging foriegn companies.

Yes, if that makes you feel better about it......lol

boron10:
You don't have to politicize this. GEJ had nothing to do with it.

I guess if it was the other way round, GEJ will have something to do with it. Lol

Afam4eva:
I guess if it was the other way round, GEJ will have something to do with it. Lol

don't mind those 2-mouthed serpents

While Nigerians seem to be more economically enpowered recently because of persistent high oil prices, we should give credit to whoever is steering the ship. Now the question is "are things being put in place for our economy to be stable just in case oil prices dwindle to $9 to $20 per barrel as it was during the military era?"

Dr Walter: It shows d inability of our government to develop and manufacture local content....it shows Ghana are encouraging and developing dere indigenous companies instead of encouraging foriegn companies.

Very true! Over dependence on foreign companies cannot encourage their local counterparts.