PZ Cussons, Logo

Goddy Egene

Shareholders of PZ Cussons Nigeria Plc will tomorrow endorse the N1.707 billion dividends recommended by the Board of the company for the year ended May 30, 2012. The dividend, which translate into 43 kobo per share, would be approved at the 64th Annual General Meeting scheduled to hold in Abuja.

However, the dividend is 38 per cent lower than the N2.732 billion or 63 kobo per share the shareholders received the previous year. The reduction was a reflection of the reduction in the profit level of the company. PZ Cussons Nigeria posted a profit after tax of N2.41 billion in 2012, down from N5.217 billion in 2011.

In his report to shareholders ahead of the AGM, Chairman of PZ Cussons, Prof. Emmanuel Edozien, said  that though the overall results were not in line with their projections, the choice of investing in volume growth and improving the cost structure during the year, had given them the confidence that would put the company  on the right footing  for profitable growth in the future.

According to him, while turnover for the year witnessed an increase of 10 per cent, rising from N65.9 billion to N72.2 billion in 2012, profitability was adversely affected as the company was unable to fully pass   on the impact of   raw material cost increase and naira devaluation  to trade.

“Other options were assessed and optimised during the year to improve the profitability while maintaining competitive consumer price points. Furthermore, N472 million of exceptional restructuring costs were incurred during the year to streamline the supply chain and overheads,” he said.

Edozien noted that in line with strategic plans and direction in the forthcoming financial year, there is every optimism that the company would deliver the targets.

“The company has   invested in strengthening the supply chain and improving operational efficiency, to optimise the cost base and consumer experience. The soap and manufacturing processes have been upgraded to further enhance the product and consumer experience. These initiatives plus other investment s to optimise the supply chain and overall overheads ill ensure a flexible and competitive cost structure for our company going forward,” he said.