PZ Cussons Nigeria yesterday held a facts behind the figures session at the Nigerian Exchange Limited. Companies usually do this when they have a major move to make (mostly fund raising). Ideally this should be a more frequent event, but ideals and reality are on two different bus stops. 

About the firm 

PZ Cussons Nigeria Plc was incorporated in Nigeria on 4 December 1948 under the name of P.B. Nicholas and Company Limited. The name was changed to Alagbon Industries Limited in 1953 and to Associated Industries Limited in 1960. 

The Company became a public Company in 1972 and was granted a listing on the Nigerian Stock Exchange. The name was changed to Paterson Zochonis Industries Limited on 24 November 1976 and in compliance with the Companies and Allied Matters Act, it changed its name to Paterson Zochonis Industries Plc on 22 November 1990. 

On 21 September 2006, the company adopted its present name of PZ Cussons Nigeria Plc. The principal activities of the Group are the manufacturing, distribution and sale of a wide range of consumer products and home appliances through owned depots. 

Major shareholders

PZ Cussons UK, Cardinal Stone and AMCON&PFA are the key shareholders. 

PZ Cussons UK has a 73.27% stake amounting to 2.9 billion shares. 

Cardinal Stone has a 4.91% stake amounting to 194 million shares 

AMCON has a 1.56% stake amounting to 61.9 million shares 

The rest is held by the public. 

Recent earnings 

H1 2024/2025 numbers show the firm gradually inching back to profitability. 

What did we learn from the event? 

The biggest takeaway for me was the company’s ability to drive higher sales in the premium product category. Amazing being able to do that in a tough economy. 

Management is keen on increasing exports in order to earn more dollar revenue. That came up a few times at yesterday’s event. 

Management also avoided the elephant in the room: Will they be raising equity capital? Management says they would be exploring all options. Beyond that or a conversion of debt to equity, i dont see any other options. 

If the parent company decides to inject capital, it very likely will end up with an even bigger stake. For retail investors, the worry has always been will the company decide to deslist (that means to exit the stock exchange).

Avoiding this question, in our view seems to have negated the essence of the entire event. 

How have its shares fared? 

Year to date, the stock is down 8.23%, underperforming the All Share Index which is up 4.7%. Stretch back to a 5 year basis, and the stock hasn’t done badly. It is up 346%. 

The average retail investor takes dividends very seriously. On that front, the last two years have been rough with none.