By Goddy Egene
According to the results, the conglomerate posted a revenue of N37.379 billion for the HI of 2020, up 10 per cent from the N33.947 billion in 2019. Cost of sales stood at N27.221 billion as against N28.153 billion the company to end the period with gross profit of N10.158 billion, up by 75 per cent from N5.793 billion in 2019.
Sales and distribution expenses went up marginally by 0.8 per cent from N4.626 billion to N4.587 billion, while administrative expenses, apparently impacted by rising inflation and general cost of doing business in the country, jumped by 34.1 per cent from N2.667 billion to N3.575 billion.
Consequently, operating profit printed at N1.996 billion in 2020, as against a loss of N1.499 billion in 2019. PZ Cussons recorded other income of N1.828 billion. A significant part (N1.742 billion )of the income was realised from sale of factory premises in Ikorodu, Lagos, to Friesland Campina Wamco Nigeria Plc.
However, the company recorded a foreign exchange loss of N2.847 billion in 2020, compared with N52 million in the previous year. As a result, profit before tax of N1.028 billion as against a loss of N1.580 billion in 2019 and profit after tax of N821 million, which is a great recovery from a loss after tax of N1.585 billion in 2019.
Meanwhile, trading at the stock market resumed for the week on bullish note as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 1.74 per cent to close at 37,443.40. In the same vein, market capitalisation added N333.8 billion to be at N19.6 trillion. The market had gained N1.3 trillion last week following sustained demand by investors.
And analysts at Greenwich Trust Research, had said the market would likely remain upbeat buoyed by end-of-year portfolio re-balancing by fund managers, or even the “Santa-Rally.”
Also, analysts at Cordros Research had said in the short term, they still see scope for expansion in valuation multiples as the hunt for alpha-yielding opportunities, in the face of increasingly negative real returns in the fixed income market, remains positive for stocks.
The market maintained the bullish performance with yesterday. However, activity level was mixed as volume traded increased 0.2 per cent to 427.1 million shares while value traded decreased by 24.1 per cent to N3.3 billion.