The N3.2 billion dividend payout by PZ Cussons Nigeria, has helped to boost the liquidity of shareholders.
September 29, 2015 was very significant for shareholders of PZ Cussons
Nigeria, the largest subsidiary of the PZ Cussons global group.
That was the day the shareholders assembled in Calabar, Cross River,
for the 67th annual general meeting (AGM) of the company. Apart from
having a successful AGM, the shareholders were gladdened by the
enhancement of their pockets through the payment of a final dividend of
N2.422 billion for the year ended May 31, 2015. After approving the
dividend on Tuesday, the shareholders began to receive it on Wednesday, a
development that put smiles on their faces.
According to some of the shareholders, the dividend came at the right
time to meet their financial needs in the area of children education.
“While we had received at interim dividend of 20 kobo, the final
dividend came at the right time. Personally, the dividend has assisted
me to take care of some of children educational needs,” an enthusiastic
shareholder said.
The interim dividend of N794 million plus the final of N2.422 billion
brought the total dividend for the year to N3.214 billion.
Corporate Profile
PZ Cussons Plc is a subsidiary of PZ Cussons global group. PZ Cussons
(Holdings) Limited United Kingdom, held 70.95 per cent equity of the
company as at May 31, 2015. The history of the company in Nigeria began
in 1899, when Paterson Zochonis (PZ) opened a branch office in
Nigeria. In 1948, PZ acquires its first soap factory of PB Nicholis
& Company Limited. In 1953, the company changed name to Alagbon
Industries (Associated Industries in 1960). In 1973, PZ entered the
detergent and refrigerator MARKETS simultaneously in Nigeria. PZ
acquires Cussons Group Limited in 1975 and in 1976, the company
witnessed global name change to Paterson Zochonis Industries Plc.
The year 2002 witnessed the global renaming of Paterson Zochonis Plc to
PZ Cussons Plc. In 2003, PZ Cussons Plc entered into a joint venture
(Nutricima) with Glanbia Plc to supply evaporated milk and milk powder
in Nigeria. In 2005, Nutricima JV commenced manufacture in Nigeria.
Also, year 2007 witnessed the name change to PZ Cussons Nigeria Plc.
The company has Chief Kola Jamodu as chairman, while Mr. Tunde Oyelola
is vice chairman. Mr. Christo Giannopoulos as managing director/chief
executive officer.
Other directors include:Mrs. Yomi Ifaturoti(executive director,
corporate affairs and administration); Mr. Alex Goma(executive
director, family care); Mr. David Petzer(executive director/financial
officer);Ms. Joyce Folake Coker(executive director, human resources0;
Mrs. Elizabeth Ebi(independent director); Mr. Lawal
Batagarawa(independent director); and Mr. Paul Usoro (non-executive
director).
Principal Activities
PZ Cussons is into the manufacturing, MARKETING, sale and distribution
of a wide range of consumer products and home appliances, which are
leading brand names thoughout th country in detergent, soap, cosmetics,
pharmaceuticals, refrigerators and airconditioners. The company also
distributes the products of Nutricima Limited, Harefield Industrial
Limited, PZ Wilmar Limited, and PZ Wilmar Food Limited.
The 2015 Results
PZ Cussons Nigeria ended the year with a revenue of N73.1 billion, up
from n72.9 billion in 2014. Operating profit stood at N6.652 billion,
up from N6.301 billion in 2014. Profit before tax was N6.55 billion,
down from N6.949 billion in 2014. Profit after tax came lower at N4.57
billion, compared with N5.1 billion in 2014.
Reviewing the performance of the company, Jamodu explained that the
company’s focus in driving shareholder value through improving
efficiencies in the supply chain and continuous investment in brands
that delight its customers was sustained during the year.
According to him, the white goods business experienced volume and top
line growth despite increasing competition from global brands and cheap
low quality imports.
“Profit before taxation dropped by 5.7 percent from N6.95 billion to
N6.56 billion mainly due to the impact of significant exchange losses
that were incurred due to the devaluation of the naira during the year
under review. Overall, it is gratifying to note that after taking into
account the impact of the tough of the operating conditions and the
competitive environment, our company performed satisfactorily against
peers in the sector. We are also well poised to sustain and improve on
this base going into the future,” Jamodu said.
Future Plans
Looking ahead, the chairman said PZ Cussons is geared towards meeting
its stakeholders’ expectations by deploying the right strategic and
tactical plans to deliver a strong performance in the coming years.
‘The optimisation of our supply chain process will continue leading to
improvement in operational efficiencies. We will also continue to invest
in core brands and growth categories through our planned extension into
new routes to market, ensuring a minimisation of our cost base.
Additionally, as we are part of a global business, we are adapting our
management structure to reflect a consumer led organisation,” he said.
The chairman disclosed that the supply chain of the company is being
integrated into a single structure across the globe and the sales
function will align across defined route to market strategies with
consistent ways of working.
“Although we are centralising, local insights will have a significant
bearing on the new product developments to ensure that our consumer
needs in local MARKETS are the driving force of our investments,” he
said.
Analysts Assessment
Analysing the results of PZ Cussons, analysts at FBN Capital Limited,
said compared with their estimates, sales were in line while both PBT
and PBT beat by over 40 per cent.
“Consensus was slightly above our forecasts. PZ (parent) had signaled
that the operating environment remained challenging in its last trading
update. We had expected that PZ’s gross margin would be weighed down by
naira devaluation. It appears the impact was not as severe as we had
thought, or that there were other offset factors that proved
significant.”
According to them, corporate social responsibility (CSR) enhanced value for PZ shareholders and other stakeholders
Like other multinationals, the financial performance of PZ Cussons
Nigeria Plc has a positive impact in all territories in which it
operates.
The board’s commitment to the principles of CSR reflects its view that
it is incumbent on leading companies to make a positive contribution to
society through their activities.
PZ Cussons Nigeria Plc board believes, however, that socially
responsible conduct is value enhancing for its shareholders and other
stakeholders. In particular, the board recognises the potential benefits
which may be derived where its CSR activities are aligned to the
concerns and demands of its customers and the Group listens to and takes
account of those concerns in shaping its business strategies and
practices. The board also recognises that companies are subject to
increasing regulation, particularly in respect of environmental issues,
and that the pursuit of a proactive CSR policy reduces the risk of
adverse regulatory action.
BY Goddy Egene
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