After a staggering N90.3 billion net loss in FY 2024, PZ Cussons Nigeria has staged a dramatic rebound, closing FY 2025 with a net profit of N10.1 billion.
For the year ended May 31, 2025, the group recorded revenue of N212.6 billion, up 40 percent from N152.2 billion in 2024. This top-line growth reflected improved sales volumes across key product categories and stronger pricing strategies. However, rising input costs weighed heavily on margins. Cost of sales jumped 58 percent to N154.9 billion from N98.1 billion, outpacing revenue growth. As a result, gross profit edged up only slightly by 7 percent to N57.7 billion, while gross margin contracted sharply from 36 percent in 2024 to 27 percent in 2025, a clear indication of inflationary pressures and supply chain cost increases.
The single biggest driver of the company’s return to profitability was the dramatic reduction in foreign exchange losses. With a more stable naira and tighter FX market interventions, PZ Cussons saw FX losses fall to N7.8 billion, compared to a massive N157.9 billion in 2024. This swing in currency exposure, coupled with improved operational discipline, enabled the group to deliver an operating profit of N18.9 billion, reversing the N124.5 billion operating loss of the previous year.
On the surface, the improvement in operating profit looks impressive. But once normalised, adjusted for one-off items and FX-driven gains, operating profit was down by 20 percent year-on-year. This underlying weakness suggests that, while headline results are much improved, core earnings power is still under pressure.
The group’s total assets expanded 7.5 percent to N168.9 billion, delivering a return on average assets of 6 percent. However, equity remains negative, though the deficit improved to –N17.3 billion from –N27.5 billion in 2024. Borrowings declined to N71.3 billion from N89.1 billion following debt repayments, but rising accruals pushed overall payables to N105.1 billion.
On the liquidity side, trade receivables fell 30.6 percent to N12.3 billion, while operating cash flow turned around strongly, hitting N40.7 billion at year-end. Still, with net debt of N30.6 billion and a net debt-to-EBITDA ratio of 1.46x, the company remains highly leveraged.
By segment, home and personal care products, including Carex, Premier, Cussons Baby, Morning Fresh, and Joy, accounted for N121.6 billion in revenue. Electrical appliances contributed N86.5 billion, a 41 percent jump from N61.4 billion in 2024, underscoring growth in consumer demand for durable goods.
PZ Cussons’ FY 2025 results highlight a remarkable turnaround driven largely by the easing of FX pressures and improved debt management. Yet, narrowing margins, negative equity, and heavy leverage suggest the recovery is fragile. Sustaining profitability will require tighter cost controls, a stronger balance sheet, and consistent cash generation, particularly as consumer spending remains vulnerable in Nigeria’s volatile economy.