PZ Cussons Nigeria Plc posted a sharp turnaround in its first-quarter earnings, with profit buoyed by foreign exchange gains that helped offset rising costs and extend a sales rebound.
The consumer goods maker, a subsidiary of the UK-listed PZ Cussons Group, reported a net profit of N13.49 billion for the three months ended Aug. 31, reversing a loss of N4.65 billion in the same period last year, according to its filing to the Nigerian Exchange. Earnings per share rose to N3.29 from a negative N1.16.
The after-tax profit for the period is 34 percent higher than N10.06 billion recorded in the full year of 2025, highlighting the significance of naira stability in the company’s earnings.
A key driver was a N3.57 billion foreign exchange gain, compared with a N9.28 billion loss a year earlier, reflecting the impact of naira volatility on companies that import raw materials and hold foreign-denominated balances. That swing alone accounted for the bulk of the turnaround in operating profit, which climbed to N21.59 billion from a loss of N4.10 billion last year.
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Revenue also contributed, rising 48 percent to N59.01 billion, as consumer demand held up despite inflation running above 20 percent.
Gross profit advanced to N15.90 billion from N12.23 billion, though higher selling and distribution expenses — which rose 55 percent to N5.66 billion — and administrative costs, up 20 percent at N4.37 billion, continued to pressure margins.
The company’s profit before tax surged to N21.54 billion, compared with a loss of N5.22 billion in the prior year. After income tax expenses of N8.05 billion, net income stood at N13.49 billion.
The naira, which has lost more than half its value since mid-2023 following the government’s exchange rate reforms, has begun to stabilise, climbing to its strongest in eight months after the apex bank rolled out reforms to shore up the currency.
Last year, PZ Cussons took a N9.28 billion hit from FX losses, but in the latest quarter, those same exposures boosted earnings.
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PZ Cussons, which markets brands including Imperial Leather, Premier Soap, and Morning Fresh, has in recent years faced narrowing margins as inflation and weakening consumer demand squeezed household budgets.
The company’s reliance on imported raw materials makes it especially sensitive to currency swings, with its fortunes closely tied to Nigeria’s exchange-rate trajectory.
Shares of PZ Cussons Nigeria surged 10 percent to close last trading day Thursday, October 2, 2025 at N37.95 per share on the Nigerian Stock Exchange (NGX).
PZ Cussons began the year with a share price of N24.30 and has since gained 56.2 percent on that price valuation, ranking it 77th on the NGX in terms of year-to-date performance.