PZ Cussons Nigeria Plc has announced that its consolidated revenue grew by three per cent to N80.6bn in the year ended May 31, 2018.
According to the firm’s Chairman, Chief Kola Jamodu, the revenue growth was higher than the N78.2bn recorded in the previous year.
He disclosed this while addressing shareholders at the company’s 70th Annual General Meeting in Abuja.
Jamodu said the revenue growth came in spite of drop in operating profit and profit after tax by 37.7 per cent and 47.7 per cent, respectively, relative to the previous financial year.
He said the results were largely reflective of the performance of the economy with Gross Domestic Product growth of two per cent.
“Improvement in foreign exchange earnings, stability and access has, however, helped in the area of importation that is critical for raw materials,” he added.
The PZ chairman explained that the cost of borrowing also had effect “on our performance with borrowing hovering around 20 per cent, thus increasing cost of goods. This coupled with ill liquidity dampened growth in sales.”
He, however, stated that a number of measures had been taken to guarantee a more sterling performance in the next financial year.
He outlined the measures as further streamlining and optimisation of products to improve focus on key brands; consolidation of existing infrastructure and facilities towards improving supply chain efficiencies; optimisation of operating model to reduce overhead space and speed to market for new products.
Jamodu assured shareholders that the firm’s balance sheet remained strong despite the competition in the Fast Moving Consumer Goods sector, as the company’s total assets was N88.1bn and had maintained a strong cash position.