Business
PZ Cussons Nigeria to pay shareholders N9.9 billion dividend after four-year pause
PZ Cussons Nigeria is ending a three-year lull in dividend payment to distribute N9.9 billion to shareholders as its retained earnings swung back to positive for the first time since taking a hit in 2023.
In a corporate disclosure on Monday, the local subsidiary of Manchester-based consumer goods producer PZ Cussons detailed a proposal to pay a N2.50 dividend per share for the year ended 31 May 2026, fixing the qualification date for 9 October and payment for the 30th of the same month.
The compensation package also offers an alternative of receiving shares instead of dividends to those who prefer increasing their existing holdings in the company to taking immediate cash rewards.
Either way, both options require shareholders’ assent at the next annual general meeting in October for the board to further the plan.
“The reference share price for the purpose of determining the number of shares due to qualifying shareholders who elect for the share option will be a ten-day trading average of the company’s share price on the floor of” the NGX starting on 12 October, PZ Cussons said in the document.
The company last paid a dividend in 2022, having been largely incapacitated by a sweeping foreign exchange loss that tipped its accounts into a N90.3 billion net loss in 2024.
READ ALSO: PZ Cussons’ annual profit quickens by 298% as asset disposal boosts earnings
That year, PZ Cussons, like many manufacturers in Nigeria that rely on raw material imports for most of their operations, reported an FX loss of N157.9 billion after major devaluations of the naira, beginning from 2023, wore away over 70 per cent of its value, compared to the dollar.
Retained earnings, from which companies pay dividends, have been in the red since 2024, only turning positive in the year under review, thanks to a 349 per cent surge in profit to N45.2 billion.
Proceeds from asset disposal totalling N38.7 billion drove the profit rise.
Turnover in the review period scaled up by 22.5 per cent to N260.5 billion on account of improved sales from its home and personal care products division.
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After two successive weeks of loss, Nigerian stocks found resilience last week amid stronger buy pressure, helping market capitalisation appreciate by 0.8 per cent.
The oil & gas index propelled the fairly good performance, thanks to substantial gains by Seplat Energy, contrary to the penultimate week when it fared worst among the five sector indices.
In a way, it is a reassurance that investors’ interest in energy stocks is building up in view of the vibrant outlook on the sector that spikes in the price of crude holds for producers as the US-Israel war against Iran continues.
The upbeat market mood owes its debt to the profound revenue growth and, in some cases, a surge in profit that oil companies recorded at half-year locally and globally.
Looking forward, hopes are high this week that two key positives – Nigeria’s reclassification as a frontier market by FTSE Russell and its upgrade from stable to positive by Moody’s last week – could drive stocks further upwards.
PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.
The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions, with the expectation that selected stocks will record reasonable price appreciation with the passage of time.
This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.
Zenith Bank
Zenith Bank tops this week’s pick on the basis of its sound fundamentals and for trading below its intrinsic value. The lender’s net profit ratio (NPR) is 21.8 per cent, while the price-to-earnings (PE) ratio is 4.8x. Its 14-day relative strength index (RSI) is 55.2.
MTN Nigeria
MTN Nigeria makes the selection due to its robust fundamentals. The telecom operator’s NPR is 21.9 per cent, while the PE ratio is 11.6x. Its 14-day RSI is 28.8.
AXA Mansard Insurance
AXA Mansard Insurance makes the cut by virtue of its strong fundamentals and for trading below its intrinsic value. The NPR of the insurer is 3.4 per cent, while the PE ratio is 29.8x. Its 14-day RSI is 49.6.
Unilever Nigeria
Unilever makes the list on account of its sound fundamentals. The company’s NPR is 14.1 per cent, while the PE ratio is 19.6x. Its 14-day RSI is 30.5.
Jaiz Bank
Jaiz Bank appears on the pick based on its attractive fundamentals. The NPR of the bank is 28.5, while the PE Ratio is 11.6. The 14-day RSI is 39.2.
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