Business

PZ Cussons dips into reserves to pay dividend

PZ Cussons Nigeria Plc will be taking retained earnings from its reserves to supplement earnings and pay dividends for the immediate past business, according to a report by the board of the company.

The board of directors of PZ Cussons has recommended payment of about N1.99 billion to shareholders as cash dividends for the immediate past business year, representing dividend per share of 50 kobo for the 2016 business year.

However, the company’s net basic earnings per share had dropped from N1.02 in 2015 to 47 kobo in 2016.

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PZ Cussons United Kingdom, which holds the majority equity stake in PZ Cussons Nigeria, will receive more than 70 per cent of the dividends.

The interim report and accounts of PZ Cussons Nigeria for the year ended May 31, 2016 showed that turnover stood at N69.53 billion in 2016 as against N73.13 billion in 2015.

Operating profit dropped from N6.65 billion to N3.25 billion. Profit before tax also declined from N6.56 billion to N3.15 billion. Profit after tax declined from N4.57 billion to N2.13 billion. Earnings per share dropped from N1.02 to 47 kobo.

The dividend will be paid to shareholders in the book of the company by September 23, 2016 and it will become payable on October 7, 2016.

Chairman, PZ Cussons Nigeria Plc, Chief Kola Jamodu, attributed the performance of the company to difficult macroeconomic environment that included scarcity of foreign exchange, price hikes, weakening consumer demand and violence in some part of the country.

 

 

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