PZ Cussons Plc has started its 2025/26 financial year on a strong footing, recording a profit before tax of N21.541 billionfor the first quarter ended August 31, 2025. This marks a major turnaround from the N5.22 billion loss reported in the same quarter of the previous year. Impressively, this figure already surpasses the company’s full-year profit of N16.66 billion for 2024/25.
Profit after tax stood at N13.486 billion, compared to a loss of N4.648 billion in Q1 last year. Earnings per share rose to N3.29, higher than the previous year’s full-year EPS of N2.32. Revenue also grew significantly, rising 48% year-on-year to N59.0 billion, representing 28% of last year’s total. A major boost came from other income, which jumped to N12.175 billion, driven by property sales worth N11.965 billion and additional gains from scrap sales. Interest expenses dropped sharply by 84% to N221 million, while borrowings fell by 18% to N58.386 billion, most of which remain owed to its UK parent company.
Despite the strong earnings, the company’s gross profit margin slipped to 27% from 31%, as cost of sales rose faster than revenue. Nevertheless, gross profit still improved in absolute terms to N16.099 billion from N12.231 billion. Operating profit rose to about N22 billion, exceeding last year’s full-year figure by 14%. Total assets expanded by 8.6% to N183.487 billion, largely from inventory, receivables, and cash. Retained losses narrowed to N25.72 billion, reducing negative shareholders’ funds to N3.855 billion. However, trade and other payables climbed to N117 billion from N105 billion, pointing to possible working capital strain.
If this momentum continues, the company could exit negative equity and return to positive shareholder funds by the second quarter. Still, analysts caution that the strong result was significantly boosted by one-off property sales, which may not recur. To strengthen its balance sheet, management may need to conserve cash by delaying dividends, raise fresh capital, or pursue further asset disposals.
Investors are keen to see whether this performance signals a lasting recovery or a temporary boost from exceptional items. On the market side, PZ Cussons shares opened the period at N24.30 and closed September at N34.50, delivering a year-to-date gain of about 42%.