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.
Economy
NGX Group’s 65th Annual General Meeting Holds April 29
By Aduragbemi Omiyale
The 65th Annual General Meeting (AGM) of the Nigerian Exchange (NGX) Group Plc has been fixed for Wednesday, April 29, 2026, at 11:00 am at its corporate head office on 2–4 Customs Street, Lagos.
Business Post gathered that the meeting would be streamed live on the company’s website and social media platforms to enable broader participation by shareholders and stakeholders unable to attend physically.
As part of a special business, shareholders will consider a proposed bonus issue of one new ordinary share for every three existing shares held as at the close of business on April 10, 2026, subject to regulatory approvals.
The proposal also includes an increase in the organisation’s share capital from N1,102,309,954 to N1,469,746,605, to accommodate the bonus shares and amendments to the Memorandum of Association to reflect the new capital structure.
Also at the gathering, shareholders will consider and, if deemed fit, approve the company’s audited financial statements for the year ended December 31, 2025, alongside the reports of the directors, auditors, board evaluation consultants, and audit committee.
The meeting will also deliberate on the declaration of a final dividend and the re-election of three non-executive directors retiring by rotation, who are Mr Umaru Kwairanga, Mrs Ojinika Olaghere, and Dr Okechukwu Itanyi.
Other ordinary business items on the agenda include authorising the board to fix the remuneration of the external auditors, determining the remuneration of managers, and electing members of the statutory audit committee.
Economy
BNB Price Reflects Changing Dynamics in the Digital Asset Market
Economy
NASD Unlisted Security Index Crosses 4,000-point Benchmark Again
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange achieved a milestone on Friday, April 24, 2026, after five securities on the platform helped with a 1.85 per cent growth.
Data showed that the NASD Unlisted Security Index (NSI) again crossed the 4,000-point benchmark yesterday.
The index chalked up 73.64 points during the trading day to close at 4,052.59 points compared with the preceding session’s 3,978.95 points, while the market capitalisation added N5.38 billion to finish at N2.424 trillion versus Thursday’s closing value of N2.380 trillion.
The price gainers were led by Okitipupa Plc, which grew by N25.00 to sell at N305.00 per share compared with the previous price of N280.00 per share. Central Securities Clearing System (CSCS) Plc gained N6.92 to close at N76.26 per unit versus N69.34 per unit, Afriland Properties Plc appreciated by N1.00 to N17.00 per share from N18.00 per share, FrieslandCampina Wamco Nigeria Plc improved by 55 Kobo to N99.55 per unit from N99.00 per unit, and Food Concepts Plc increased by 5 Kobo to N2.70 per share from N2.65 per share.
However, there was a price loser, MRS Oil, which dipped by N21.75 to N195.75 per unit from N217.50 per unit.
During the final session of the week, the value of securities jumped 75.2 per cent to N41.3 million from N23.6 million units, and the number of deals expanded by 62.9 per cent to 44 deals from 27 deals, while the volume of securities declined marginally by 0.9 per cent to 447,403 units from 451,522 units.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by volume (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
GNI was also the most active stock by value (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 59.6 million units transacted for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.
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