PZ | PZ Cussons Nigeria H1 2024 Quick Take : High Exchange Loss erodes profitability

    In its H1 2024 (6M ended November-2023) earnings result, PZ Cussons Plc. (PZ) recorded Revenue growth of 18.9% y/y to N68.09bn from N57.26bn in H1 2023. Q/q, PZ’s Revenue grew 19.1% y/y to N37.02bn Q2 2024 from N31.07bn in Q1 2024.

    The company’s cost of sales (adjusted for depreciation) was up by 5.9% y/y to N45.51bn in the period from N42.96bn in H1 2023. Consequently, its Gross profit grew to N22.56bn in H1 2024 from N14.30bn in H1 2023 bringing the company’s Gross profit margin to 33.2% in H1 2024 from 25.0% in H1 2023.

    PZ’s Total Operating Expense (adjusted for depreciation) advanced by 30% to N11.60bn in H1 2024 from N8.92bn in H1 2023, largely driven by the 15.4% y/y rise in Marketing and Administrative Expenses to N6.67bn in H1 2024 from N5.78bn in H1 2023. Its Selling and Distribution Expenses also rose significantly, up 57.0% y/y to N4.94bn in H1 2024 from N3.15bn in H1 2023. Consequently, OPEX Margin was up by 1.1ppt to 16.9% in H1 2024 from 15.8% in H1 2023


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