PZ Declares N1.22bn PAT in Q2 2019 Results (SP:N11.00k)


Friday, December 28, 2018 03:10 PM / NSE with additional note from FBNQuest

Proshare Nigeria Pvt. Ltd.


FBNQuest – Initial Reaction


Implications: We expect a neutral reaction by the market. Indeed, we believe Q2 results should already be priced in, following the Q2 trading update provided by parent company a few weeks ago. Q2 sales of N19.2bn fell -14% y/y and -21% q/q. As expected, weak market conditions continue to weigh on topline performance. Additionally, a 608bps gross margin contraction y/y weighed on profits during the quarter.    


Positives: PZ posted a net fx gain of N143m, reversing a net fx loss of -N779m in Q2 2018. Q2 Net interest income of N44m compares with –N229m net interest expense in Q2 2018


Negatives: All key line items worsened y/y. Compared with our estimates, while sales missed our N20.0bn forecast by 4%, PBT significantly outperformed due to the fx gain posted compared with our -N667m fx loss estimate.


Year-to-date, PZ shares have shed -44% which compares with a -19% decline by the broad market.


We rate the stock Underperform. Our estimates are under review.



PZ Cussons Nigeria Q2 2019 (end-Nov) results vs. FBNQuest Capital Research estimates (N millions)

Proshare Nigeria Pvt. Ltd.

Source: NSE, FBNQuest Capital Research estimates

Related News

1.       PZ declares N204.63m Loss in Q1 2019 Result,(SP:N12.55k)

2.       PZ declares N1.93 bn PAT in 2018 Audited Results,(SP:N15.00k)

3.       PZ Cussons Nigeria Plc Announces Its Board Meeting and Closed Period

4.      PZ Cussons Nigeria Plc Appoints Mr Georgios Sotiropoulos as Executive Director

5.      PZ Cussons Nigeria Plc Appoints Mr Pedro Barreto as Chief Finance Officer

6.      PZ Cussons Nigeria Plc Q1’18 - FY’18 Begins With a Loss as FX Overhang Persists

Related News