Investors react negatively to PZ’s Q1 results

Following the release of PZ Cussons first quarter results posted on the Nigerian Stock Exchange’s Official Website on Tuesday, the stock recorded decline of 4.98 per cent to close at N24.23 per share.

An analysis of the results showed Gross Margin was down by 3 percentage points to 32 per cent for the period ended August 31st 2017, as against 35 per cent recorded for the same period of the previous year.

Net profit Margin improved to -0.7 per cent compared to -9 per cent a year ago, while operating margin for the period stood at 10 per cent compared to 13 percent recorded previous year.

The result still in negative territory shows a significant improvement from the previous year’s first quarter.
The company recorded a 92.2 per cent reduction in losses posted. The losses incurred in Q1’2017 amounted to N123.1million as against a loss of N1.585 billion posted in Q1’2016.

Earnings per share are still in the negative territory of 3 kobo, but the company improved turnover slightly by 12.8 per cent.

Turnover for the review period rose to N19 billion from N16.8bn and operating profit dropped 16.2 per cent to N1.89bn from N2.2bn recorded in the preceding year.
PZ posted a loss before tax of N181m, while tax reduced 93 per cent to 57.9 m.

Afolabi Adesola