PZ Cussons Nigeria PLC has announced an extraordinary general meeting of its shareholders and stakeholders to address the company’s negative net asset position as of the end of its Q2, 2023/2024 financial year. This decision follows the disclosure by its Board to the NGX on Monday, subsequent to the publication of its results.
The meeting is scheduled to take place on the 30th of March in Abuja and agenda will include discussions on the unaudited financial statement for the period ended March 2023, as well as measures to tackle the company’s negative net assets. In its unaudited financial report for Q2 2023/2024, PZ Cussons Nigeria PLC recorded an after-tax loss of N74.14 billion, leading to negative net assets.
Key highlights of the financial result include revenue of N68.08 billion, an operating loss of N77.01 billion, and a loss before taxation of N73.79 billion. An analysis of the company’s financial position reveals that it suffered a significant N87 billion foreign exchange loss due to the depreciation of the Naira, coupled with a 6% reduction in volume. This economic downturn has had a substantial impact on its operations.
The company’s Board attributes the operating loss to ongoing Naira depreciation and the decrease in overall volumes. Additionally, they highlighted a foreign exchange loss of N87.0 billion on foreign currency-denominated trade obligations, which significantly impacted the operating result.
The Board emphasizes that the above operating loss is the primary factor contributing to the company’s negative total equity position of N23.2 billion as of November 30, 2023. On that date, the Group’s financial liabilities, predominantly denominated in foreign currencies, stood at N178.0 billion, while total assets were at N154.8 billion.
