Thursday, March 28, 2019 08:45AM / NSE With Additional Notes From FBNQuest
We expect a negative market reaction, along with downward adjustments to consensus 2019E forecasts following a disappointing set of results. Q3 sales were down -10% y/y to N20.0bn, and the company reported a pre-tax loss of –N414m for the quarter.
All key line items worsened y/y. Sales missed our N21.9bn forecast by 9%, while the Q3 pre-tax loss was far off our PBT estimate of N2bn. This negative surprise was driven by a 766bp y/y contraction in gross margin.
Year-to-date, PZ shares have shed -17% versus a -1.9% decline by the broad market.
We rate the stock Underperform. Our estimates are under review.
PZ Cussons Nigeria Q3 2019 (end-Feb) results vs. FBNQuest Capital Research estimates (N millions)