Economy
PZ Cussons Nigeria: Q2-18 PAT; Earnings Recover After a Bumpy Start to 2018
By Cordros Research
The Q2-18 PAT of N710 million announced by PZ yesterday beat the N590 million we estimated. Driving the outperformance were higher revenue and lower operating expenses, compared to our estimates, which more than offset the surprise net finance cost and higher effective tax rate.
Overall, the result was impressive, consistent with management’s guidance, following a bumpy start to the year.
Continued revenue growth was one of the assumptions backing our positive outlook for PZ’s earnings in 2018F. Indeed, top-line increased by 34% during the review period, compared to the 26% growth we estimated.
We continue to argue that the slightly better Nigerian consumers’ condition relative to 2016 has proved helpful for consumer companies’ sales. For hindsight, the 18% q/q growth in PZ’s Q2-18 revenue is well-above the 9% q/q average growth recorded during the same period, since 2012 (within available data).
On like-for-like basis, gross margin came in at 25%, in line with our estimate. Compared to Q1-18, gross margin was higher by 278 bps, the primary driver being a materially lower (by 56% q/q) foreign exchange loss, following the continued strengthening of the Naira against the US dollar. This is also one of the assumptions backing our positive outlook for PZ’s earnings in 2018F.
Though operating expenses grew by 21% y/y and 4% q/q respectively, as a proportion of revenue, the ratio was lower by more than 200 bps each. Compared to our estimate, both OPEX and the margin were lower by 5% and 252 bps respectively.
Net finance cost of NGN230 million was recorded, as against the income of NGN111 million we estimated. PZ’s management alluded to Naira credit availability being tight during the first half, and this, in our view, points to expensively sourced working capital as the underlying driver of the continued booking of finance cost (NGN350 million in Q1-18) –a practice the company is unfamiliar with.
PZ’s Q2-18 result is impressive in our view. That said, we think market reaction would be neutral to negative, given that net profit trailed Q2-17’s by 45%. The stock has accumulated 67% YtD, but has lost 19.30% QtD.
By Aduragbemi Omiyale
The pre-registration training and examination for capital market operators (CMOs) for the second quarter of 2026 has been postponed.
Business Post gathered that the new date for the exercise is now Monday, June 15, 2026.
This information was disclosed by the Securities and Exchange Commission (SEC) through a circular on Monday, June 8, 2026.
The Nigerian capital market regulator stated that this postponement has also resulted in the extension of the deadline for registration to Friday, June 12, 2026.
In the notice today, the SEC expressed its regret for the inconvenience this action may cause operators, who had prepared for the initial date of the training and examination.
“Further to the recent circular on Q2 2026 Pre-registration Training and Examination, the Securities and Exchange Commission (SEC) hereby informs all eligible applicants for the Q2 2026 Pre-registration Training and Examination that the commencement date has been postponed to Monday, June 15, 2026.
“Registration on the designated portal has also been extended to Friday, June 12, 2026. All other conditions contained in the circular remain unchanged.
“The commission regrets any inconvenience this postponement may cause and appreciates the understanding of all applicants,” the disclosure noted.
By Aduragbemi Omiyale
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, has listed additional shares on the Nigerian Exchange (NGX) Limited.
The new stocks absorbed into the stock market were 600 million units, raising the total issued and fully paid-up shares of Fidson to 3,000,000,000 ordinary shares of 50 Kobo each from 2,400,000,000 ordinary shares of 50 Kobo each.
The fresh equities came from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share.
They were issued to existing investors on the basis of one new ordinary share for every existing four ordinary shares held as of the close of business on Wednesday, November 12, 2025.
Confirming the development, the regulator in a notice said, “Trading licence holders are hereby notified that an additional 600,000,000 ordinary shares of 50 Kobo each of Fidson Healthcare Plc were on Tuesday, June 2, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing four ordinary shares held as at the close of business on Wednesday, November 12, 2025.
“With the listing of the additional 600,000,000 ordinary shares, the total issued and fully paid-up shares of Fidson Healthcare Plc have now increased from 2,400,000,000 to 3,000,000,000 ordinary shares of 50 Kobo each.”
By Modupe Gbadeyanka
This news will surely excite local contractors with verified claims of N100 million or less, as the federal government has approved their payments.
This approval for the disbursement was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
This followed a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
The beneficiaries cover contractors across multiple ministries, departments and agencies. The release of the funds is expected to enable contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
In an announcement on Monday, the Federal Ministry of Finance also said this latest batch of payments would ease liquidity pressure on small businesses and accelerate economic activity nationwide.
It was noted that the payments for verified claims of N100 million below were strategically done to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
The payments form part of a broader push to clear inherited contractor obligations, with over N700 billion verified in recent months.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the ministry said in a statement.
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