PZ Cussons Nigeria Plc has reported a sharp return to profitability in its unaudited results for the half year ended 30 November 2025, posting a pre-tax profit of N37.9 billion.
This marks a significant reversal from the N5.5 billion pre-tax loss recorded in the corresponding period of 2024, underscoring the scale of the recovery achieved within one year.
The turnaround was supported largely by a strong second-quarter performance, with Q2 pre-tax earnings of N16.3 billion, alongside a combination of stronger revenue, foreign exchange gains, a surge in other income, and a steep reduction in finance costs. Together, these factors helped restore profitability after a difficult prior year marked by currency losses and high borrowing costs.
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For the six-month period, revenue rose to N127.9 billion, representing a year-on-year increase of 32.59% from N96.4 billion. The growth was driven by sustained demand across the company’s Hygiene, Baby, Beauty, Food & Nutrition, and Electricals segments, suggesting that consumer demand for its core brands remained resilient despite broader macroeconomic pressures.
Cost of sales climbed to N93.6 billion, up 34.80% year on year, reflecting higher input and operating costs. Even so, gross profit expanded to N34.2 billion, a 26.91% increase, indicating that the company was able to preserve margins to a large extent while growing volumes and revenue.
Operating performance improved markedly. Selling and distribution expenses rose sharply to N11.6 billion, an increase of 46%, largely in line with higher sales activity and distribution costs. Administrative expenses, however, edged down slightly to N8.02 billion from N8.08 billion in the prior period, offering some cost stability.
A major boost came from foreign exchange movements. PZ Cussons Nigeria recorded an FX gain of N8.6 billion, reversing the N15.1 billion loss suffered in the same period of 2024, a swing that significantly altered the earnings profile. In addition, other income surged to N14.7 billion, up more than fourteenfold year on year. Most of this was driven by a N14.2 billion profit on the disposal of fixed assets, supplemented by rental income of N412.7 million and scrap sales of N150.3 million.
These developments helped operations swing decisively from a N3.3 billion loss in the first half of 2024 to an operating profit of N37.9 billion in the current period.
On the financing side, the company benefited from a sharp reduction in borrowing costs. Finance costs were cut to N473.7 million from N2.7 billion a year earlier, while interest income stood at N431.4 million. This easing of finance expenses provided further support to earnings, allowing the group to convert operating gains into a strong bottom-line performance.
After accounting for income tax of N16.4 billion, profit after tax came in at N21.4 billion, confirming the strength of the rebound.
The balance sheet also showed signs of stabilization. Total assets increased to N179.4 billion, up 6.23% from N168.9 billion in the prior period. Inventories stood at N66.2 billion, while cash and cash equivalents rose to N45.5 billion, providing improved liquidity. Total equity rebounded to N4 billion from a negative position of N17.3 billion previously, reflecting the impact of the return to profitability.
Retained earnings remained in negative territory at N18.2 billion, but this represented a significant improvement from the N38.7 billion loss recorded earlier. On the liabilities side, total obligations were reduced to N175.3 billion from N186.2 billion, pointing to some deleveraging during the period.
On the equities market, the improved financial performance has been reflected in investor sentiment. PZ Cussons Nigeria shares have returned 93.42% year to date on the Nigerian Exchange as of the close of trading on 23 December 2025, placing the stock among the stronger performers on the bourse this year.
Overall, the half-year results point to a decisive reset for PZ Cussons Nigeria, with earnings recovery driven not only by revenue growth but also by currency gains, asset disposals, and lower finance costs. The sustainability of this performance will likely depend on how much of the improvement can be maintained beyond one-off income and how the company navigates cost pressures and currency dynamics in the second half of the financial year.