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Tag: PZ Cussons

  • PZ CUSSONS SEALS 3 YEAR PARTNERSHIP DEAL WITH MAN CITY

    PZ CUSSONS SEALS 3 YEAR PARTNERSHIP DEAL WITH MAN CITY

    LEADING manufacturer of various brands of fast moving consumer goods, PZ Cussons Nigeria Plc, has sealed a three year partnership deal with Manchester City Football Club. The deal, which was officially announced at the weekend at the Wheatbaker Hotel, Ikoyi, Lagos, will see the club embedded in the Nigeria market and deliver increased fan base experience across Africa.

    PZ will drive the partnership deal through three of its leading brands – Premier, Olympic and Robb. PZ Cussons’ customers will by this partnership be given the opportunity to win a number of exclusive VIP match day experiences at the Etihad Stadium and opportunities to meet the players and watch private training sessions.

    In his address, the Group Category & Brand Director, PZ Cussons Plc,  Tim Perman noted that the company’s commitment to Africa goes beyond the provision of quality products but also has a focus at bringing real consumer value through relevant content and services by igniting exceptional experiences to consumers.

    He said:“As a critical part of this strategy,we are pleased to be working closely with Manchester City Football Club in Nigeria to deliver on our consumer promise.There is a great fit between our brands in terms of heritage, values and a desire to win. We look forward to delighting our consumers with unique experiences from brands that they trust and a sport that they love.

    “The region’s growing Manchester City football club’s fanbase will be propositioned with a number of experiences and prizes to get them closer to the club. VIP tickets and meet-and-greets will be made available to competition entrants in the coming months.”

    Confirming the club’s excitement with the partnership, the Commercial Director of Manchester City Football Marketing, Omar Berrada, who brokers Manchester City’s commercial partnerships, said: “We are very pleased to add PZ Cussons to our existing partnerships in Africa. Nigeria, and Africa more broadly, are extremely important markets, where our fan base is continuing to grow. We will continue to build a strong relationship with PZ Cussons and are looking forward to providing fantastic experiences for their customers and our fans.”

    The partnership with Manchester City FC will see PZ Cussons associate its brands with Nigeria’s most-loved sport and the most popular sports competition in the country.

  • Shareholders get N3.22b dividend as PZ Cussons records N6.6b profit

    Shareholders of PZ Cussons Nigeria Plc would receive a total of N3.22 billion as cash dividends for the immediate past business year as the conglomerate showed early gains of its restructuring exercise.

    The board of directors of PZ Cussons Nigeria has recommended distribution of N2.42 billion as final cash dividend, bringing total cash payout for the year to N3.22 billion. The company had earlier this year distributed N794 million as interim cash dividend.

    Shareholders on the register of the conglomerate as at close of business on September 14, 2015 will receive a final dividend per share of 61 kobo in addition to earlier interim dividend per share of 20 kobo, representing a total dividend per share of 81 kobo. The final dividend will become payable on September 30, 2015.

    Key extracts of the audited report and accounts of PZ Cussons Nigeria for the year ended May 31, 2015 showed that total sales rose marginally from N72.90 billion in 2014 to N73.12 billion in 2015. The company’s top-line cost of sales dropped by 1.9 per cent to N52.67 billion in 2015 as against N53.71 billion in 204. However, operating expenses increased by 7.1 per cent from N12.89 billion to N13.8 billion.

    The company also came under pressure from financing costs, which rose by 215.4 per cent from N141.05 million to N444.86 million. Consequently, profit before tax slipped by 5.66 percent from N6.95 billion to N6.56 billion. Profit after tax also declined by 10.7 per cent to N4.6 billion compared with N5.1 billion in the previous year. Earnings per share dropped by 11.72 per cent to N1.03 as against N1.16 in 2014. The conglomerate’s net assets meanwhile inched up 2.67 per cent from N42.54 billion in 2014 to N43.67 billion.

    PZ Cussons Nigeria had started on major corporate restructuring aimed at streamlining its operations and curtailing costs. It earlier this year filed for regulatory approval to combine two of its wholly owned subsidiaries – PZ Power and PZ Tower with the parent company. The business combination would be effected through a scheme of arrangement.

    In a regulatory filing, the group stated that the corporate restructuring would simplify its structure and operations, thereby leading to reduction in administrative costs while simultaneously improving operational efficiency.

    PZ Cussons, the United Kingdom-based parent company that holds 69.77 per cent in the Nigerian company, has focused attention on its Nigerian subsidiary with a view to strengthening the company as the hub of its West African operations.

    PZ Cussons Nigeria has invested not less than $130 million in strengthening and expanding its business operations in Nigeria.

    During a recent visit and tour of part of Nigerian operations by members of board of directors of the PZ Cussons, Chairman, PZ Cussons, United Kingdom, Richard Harvey, said the conglomerate sees more exciting opportunities in Nigeria and it is committed to long-term development of its Nigerian business.

    According to him, PZ Cussons has continued to invest in the capacity of its Nigerian business in demonstration of its commitment to sustain its Nigerian business as a major plank of the global operations of PZ Cussons.

    He said PZ Cussons’s bouquet of products from household items to electronic appliances is in growing demand and the group looks toward its Nigerian business as a major contributor to global performance.

    “We are more excited about the opportunities now than we have been for a very long time,” Harvey said.

    He pointed out that Nigeria contributes about 55 per cent of the group’s global turnover while the refrigerator business contributed about 30 per cent to PZ Cussons Nigeria’s turnover, which approximately gave the Nigerian refrigerator business some 17 per cent of global sales.

    Harvey in company of other directors toured the newly remodeled refrigerator manufacturing plant in Ilupeju, Lagos.

    According to him, the additional refrigerator production line, which was formally commissioned during the visit, was meant to rapidly expand the distribution of cooling products In Nigeria and Ghana and to keep the company in good stead to meet anticipated continuous increase in demand.

    Harvey said the conglomerate will continue to prospect for opportunities to increase its business in Nigeria citing the recent multi-billion investment in palm oil processing plant and refinery.

    According to him, the biggest new business line-‘Mamador’, being produced from the brand new refinery at Ikorodu, Lagos, has gotten off to instant success with the company selling every bit of its production.

    “We get a series of developments we want to do but as you will expect I am not able to share those secrets with you now,” Harvey said.

    He however ruled out possible capital issue in the nearest future noting that PZ Cussons has sufficient capital base to internally fund its growth initiatives.

    He assured Nigerian shareholders that the conglomerate has been positioned for improved performance and returns while affirming the commitment of the foreign core investor to mutually beneficial relationship with its Nigerian shareholders.

    “They are investing in the right company,” Harvey quipped when asked about his message to Nigerian shareholders.

  • PZ Cussons, NOTAP sign MoU on Chemical Science, Technology

    PZ Cussons, NOTAP sign MoU on Chemical Science, Technology

    In furtherance of its Corporate Social Responsibility Programme, PZ Cussons Nigeria PLC has signed a Memorandum of Understanding with the National Office for Technology Acquisition and Promotion (NOTAP) to support research in chemical science and Technology.

    Under the terms of the MoU, PZ Cussons has agreed to fund the upgrade of the chemical laboratories in two Nigerian Universities and one Research Institute while NOTAP will co-ordinate the project.. The benefitting institutions are: University of Calabar, Modibo Adama University of Technology, Yola and the National Research Institute for Chemical Technology, Zaria.

    PZ Cussons’ intervention is borne out of its concern to fill the infrastructural gap in those institutions. The intervention is to assist the institutions acquire and install state-of-the-art equipment to facilitate the conduct of robust research activities that will produce high calibre R&D personnel.

  • PZ Cussons to combine two subsidiaries

    PZ Cussons Nigeria Plc is undertaking a major corporate restructuring aimed at streamlining its operations and curtailing costs.

    Regulatory filing showed that the Board of Directors has resolved to embark on a corporate restructuring with a view to simplifying the company’s structure and operations.

    The restructuring involves business combination of two of PZ Cussons Nigeria’s subsidiaries – PZ Power and PZ Tower with the parent company. The business combination would be effected through a scheme of arrangement.

    According to the conglomerate, the restructuring would lead to reduction in administrative costs while simultaneously improving operational efficiency.

    However, the proposed merger will be subject to the receipt of the appropriate approvals from the Securities and Exchange Commission and the Federal High Court.

    PZ Cussons Nigeria recently recommended distribution of N794.1 million to shareholders as interim dividends for the current year ending May 31, 2015. The dividend recommendation was part of the third quarter interim report and accounts of the conglomerate released yesterday.

    According to the report, shareholders on the register of the company as at the close of business on March 31, 2015 will receive a dividend per share of 20 kobo, which will become payable on April 7, 2015.

    Key extracts of the nine-month accounts for the period ended February 28, 2015 showed marginal growth in sales amidst notable decline in the bottom-line. While sales rose by 0.56 per cent, pre and post tax profits dropped by 22.85 per cent and 27.91 per cent.

     

  • Lagos rewards PZ Cussons for Chemistry competition

    Lagos rewards PZ Cussons for Chemistry competition

    For the second year in a row, PZ Cussons Nigeria has been rewarded by the Lagos State Government for its immense support to the education sector through its PZ Cussons Chemistry Challenge (PZCCC).

    At a Breakfast Meeting recently hosted by Governor Babatunde Raji Fashola (SAN), PZ Cussons Nigeria was among corporate bodies and individuals presented with the “Support Our Schools Initiative” awards for complementing the government’s effort in uplifting education standards in the state.

    Only three months ago, the second edition of PZCCC was concluded with 16-year-old Justin Ifeanyi Nwaoha of ISOLOG College, Ojodu, Lagos State crowned champion after an intellectually-engaging three-stage competition. The inaugural edition in 2013 had been won by another 16-year-old, Emmanuel Ejiogu Onyekachi, then a final year student of Miketoy College, Ikotun.

    The Breakfast Meeting, held at the jam-packed Lagos City Hall, had in attendance stakeholders in the education sector and top government functionaries.

    In his keynote address, Fashola commended the award recipients for their contribution to educational growth in the state and for making their impact greater every year. He said: “You gave your support to education in Lagos State because of the idea it represents. I particularly salute your courage. I salute your steadfastness to work with us.”

    The Corporate Affairs and Administrative Director of PZ Cussons Nigeria, Mrs Yomi Ifaturoti said that the company was excited to have been one of the recipients of the awards. She further said: “It shows that we are appreciated. It also shows that when you partner with government, there is recognition that comes with it. It also provided us the push to continue to make our contribution to the society.

    Mrs Ifaturoti stated that the award would no doubt motivate the PZCCC Board to deliver a more exciting competition in the years to come.

  • PZ Cussons’ campaign hits streets

    PZ Cussons’ campaign hits streets

    The management of PZ Cussons has begun a regional consumer engagement campaign of Canoe detergent brand, tagged: “Alive with Colour Campaign”.

    It is meant to promote the uniqueness of the brand and demonstrate how it washes clothing clean, while preserving the colours.

    The Head of Fabric Care, PZ Cussons Africa, Roy C. Ekekwe, speaking at the weekend at the activation of the product at the Ikeja Mall, Lagos, said the purpose of the brand was to enable consumers live a colourful life.

    “The brand is there to resolve the tension our consumers deal with each time they wash and clean their coloured fabrics.”

    The Brand Manager, Canoe Detergent, Gloria Jacobs, said: “Colours are at the heart of what Canoe stands for.”

    She said the brand enjoyed quality advantage over other brands in the market, being the only Nigerian colour care detergent formulated to clean and care for coloured clothes. “Its mild formulation, with soap flakes and Aloe Vera tipping, make this possible. Canoe detergent has enjoyed patronage from consumers.”

    On the regional campaign in Lagos, Abeokuta and Ibadan, she noted that the essence was to create awareness for the brand and bring its message closer to the people.

  • Jamodu returns as PZ Cussons chair

    The Board of PZ Cussons Nigeria Plc has appointed Chief Kola Jamodu as the chairman of the company. He succeeds Professor Emmanuel Edozien who retired from the board after 11 years as the chairman.

    Jamodu is assuming the position of chairman with a portfolio of diverse experience from both the private and public sectors. He was an employee of the PZ Cussons group from 1974 and served in executive positions for 24 years rising to the position of chairman/chief executive officer until he retired in 1999. He thereafter continued as chairman until 2001 when he became the Minister of Industry.

    Jamodu is an alumnus of the Harvard Business School, Boston, USA, and a fellow of the Chartered Institute of Accountants, Nigeria (ICAN), Fellow of the Chartered Institute of Taxation Nigeria, Fellow of the Chartered Institute of Management Accountants, London and Fellow of the Chartered Institute of Secretaries.

    He is Chairman, Nigerian Breweries Plc, and Director United Bank for Africa Plc and Ashaka Cement Company Plc.

    He is also the immediate past president of the Manufacturers Association of Nigeria.

    The board of PZ Cussons stated that it was convinced that with his appealing credentials, Jamodu is well positioned to provide effective leadership for the board and that the company will benefit tremendously from his wealth of experience.

     

  • Govt mulls ‘Crops’ Processing Zone’ for Cross River

    Govt mulls ‘Crops’ Processing Zone’ for Cross River

    The Federal Government is set to declare Cross River State as a ‘staple crop processing zone’ in the country.

    This is in recognition of the efforts of the state government in making the country self-reliant  in staple foods such as cassava, rice, palm oil and others  as well other crops such as cocoa.

    The state through its efforts and partnership with PZ Wilmar is stepping up efforts to plant high yielding oil palm seeds on about 27,000 hectares of land located in four different estates across the state.

    The Minister of Agriculture and Rural Development, Dr Akinwumi Adesina stated this at the weekend during a tour of the 5,590 hectare PZ Wilmar Calaro Oil Palm Estate at Mbarakom, Akampa Local Government Area in Cross River State. The estate is one of four such jointly owned by two international companies, PZ Cussons and Wilmar International Limited.

    Dr. Adesina was conducted round the expansive oil palm estate by the Managing Director of PZ Wilmar, Mr Santosh Pillai, the Vice Chairman PZ Cussons, Mr Tunde Oyelola, General Manager, External Affairs, PZ Cussons, Mr Mohammed Tahir, PZ Depot Manager, Calabar  Mr David Amutah, Cross River State Commissioner for Agriculture, Mr  James Aniyom  who represented Governor Senator Liyel Imoke, among others.

    Adesina  commended Imoke for not allowing the loss of the state’s crude oil wells to dampen his desire to develop the state but immediately went into functional partnerships with the private sector to revive the different agricultural sectors.

    He said the Federal Government appreciates his efforts to return the lost glory of Nigeria as the world’s number one producer of palm oil which he noted has various uses all over the world.

    Mr Santosh said Nigeria has the capacity to take back its lost position if the government encourages private sector operators.

    He told the minister that currently, PZ Wilmar imports hugecrude palm oil (CPO) from other countries including some West African countries in order to feed its oil mills in Lagos whereas there are more than enough land mass and workforce to produce enough palm oil for local consumption and for export as it was before the discovery of crude oil.

    Santosh lamented that Nigeria currently imports more than 350,000 metric tons of CPO annually at a huge cost and pays 35 per cent import duties.

    The company pleads with the federal Government to extend the backward integration initiative which it introduced in the cement, sugar, rice and other sectors to the agricultural sector and to assist investors like them who are out to revitalize the Palm oil sector as it has the capacity of turning the economy of the country around.

  • ‘Lagos market key to West Africa’

    ‘Lagos market key to West Africa’

    Lagos House of Assembly Speaker, Hon. Adeyemi Ikuforiji, has said the Lagos market remains the take off point for any producer seeking to serve consumers across West Africa.

    According to him,  the economy of the state is the fifth largest in Africa and second only to the rest of Nigeria in the whole of the sub-region. He commended companies that choose Lagos as their operational base for making the right investment decision.

    Ikuforiji spoke while receiving officials of nutritional products firm, Nutricima Limited, who paid him a courtesy visit ahead of the formal launch of Olympic Milk brand’s new identity and product range.

    Ikuforiji would be guest of honour at the October 15 event at The Civic Centre, Victoria Island, Lagos.

    Its Managing Director, Suneel Vasudevan, who led the team to the Speaker, said the company was established to meet the needs for high quality nutritional products in Nigeria as established by research findings.

    Receiving the team, Ikuforiji said the decision of the company and its principal shareholder PZ Cussons to invest in manufacturing in Ikorodu, a suburb of the city, was a wise one as the market is key to unlocking the sub-regional market.

    According to him, the state  hosts  all the major demographic groups across the sub-region.

    “It gladdens my heart to see that after all the years despite Nigeria’s peculiar challenges, you are not only still here, but giving birth to other companies.  They say when the going gets tough, the tough gets going, Nutricima and PZ have shown by their longevity of operations in Nigeria that they are committed to contributing to the economic development of the country and Lagos in particular being the fifth largest economy on the continent,” he said.

    Vasudevan said the rebranded Olympic Milk is a healthy choice milk product for all age groups and the new variants from milk will be unveiled tomorrow.

    He said with the launch of the new product, Nutricima will be restaging its brand as a major player in the food and beverage sector of the Nigerian economy, thus giving Nigerians a unique healthy and nutritious choice that resonates vitality.

    Nutricma is owned by Milk Ventures (U.K.) Limited, a 50:50 joint venture between PZ Cussons, Manchester and Glanbia food ingredients in Ireland. It runs a modern manufacturing facility in Ikorodu, Lagos for its productions. They include three milk brands, Nunu, Coast and Olympic, as well as other nutritious products.

  • PZ Nigeria Plc: Continuing its winning streak

    PZ Nigeria Plc: Continuing its winning streak

    FOR PZ Cussons Nigeria Plc, if the fundamentals of the business in the preceding year are anything to go by, then it may be correct to say that things are definitely looking up for the fast moving consumer goods company.

    Of course, no one expects any less from a company with an enviably rich heritage which dates back to the 18th century. But the truth is,  the company has been up and doing to be able to maintain the culture and tradition of success it has attained over the years.

    Expectedly, as shareholders converge in Abuja, the Federal capital tomorrow for the 66th Annual General Meeting, one issue that would dominate discussion and perhaps resonate among many of the participants, is how to determine whether the journey in the last one year has been smooth or worth the while after all.

    To be sure, the mood is bound to be hopeful as there is a lot going for the company at the moment. PZ has been able to continue to enjoy the loyalty of most homes as can be seen by the array of their products’ line in demand from detergents, refrigeration, expellants, confectioneries, babycare products, toiletries, sanitary wares, to mention just a few.

    Little wonder the Chairman, Professor E. C. Edozien, while reviewing the performance of the year-end ahead of the AGM, noted that although market competition remains very keen, the company has however remained focused and has been defending its market share successfully.

     

    In retrospect

     

    Edozien said the focus of the company is to drive shareholder value through improving efficiency in its supply chain, managing operational efficiencies and investing in brands that delight its consumers. These objectives were relentlessly pursued during the year; though the growth of the topline was negatively impacted by some factors resulting in a modest growth of 2 per cent rising from N71 billion to 72.9 billion.

    The Chairman observed that the white goods business experienced good volume and topline growth despite significant international competition. Also the family care business achieved growth in volume terms, but saw a decline on the topline as a result of the compelling need to be competitive on pricing in order to maintain market share.

    He said despite this and increased investment in brands and route to market expansion, “the profit before taxation (PBT) grew  by eight  per cent, from N7.7 billion to 8.2 billion before exceptional items. The exceptional items amounting to N1.3 billion reflect the write-off of assets under impairment following the outsourcing of certain activities and asset which have become redundant” he said, adding that  as a result, profit after taxation, and after taking account of the exceptional items declined by nine per cent, when compared to the previous year. It should be noted, however that without the exceptional items, a growth of about 20 per cent would have been achieved.

    He said overall, it is gratifying to note that after taking into account the impact of the tough operating conditions, the keen competitive environment and the security challenges in the country, the company still performed satisfactorily and it is expected that this commendable performance will continue in the coming year.

     

    Product lines

     

    The PZ brand has experienced an upsurge in production in key home and family care brands as they performed relatively well during the period.

    Commenting on this development, the chairman said: “The personal care business grew driven by Personal Wash, Beauty, Medicaments and Mother & Baby Categories. We maintained our leadership position in the Toilet Soap segment with Premier, Joy and Imperial Leather. Our Premier range especially Cool Deo is growing rapidly and it is driving our market leadership. The Robb range also remained the market leader of the Medicaments segment with the Hot Robb variant accelerating our growth in the hot ointment segment. Our range extension into gift packs with Cussons Baby is driving growth and leading our challenge for leadership of the baby category. Cussons Baby soap remains the market leader in the baby soap segment.

    “We successfully introduced our global brand Carex, and antibacterial hand wash liquid which has since established a leading position in the antibacterial hand wash segment. Our home care business shows growth in the household category while a slight decline was recorded in the fabric care business. Morning Fresh continues to grow and extend our leadership in the Dish was category. We launched Canoe detergent fro colour care to expand our fabric care portfolio while Zip consolidated its position as a leading detergent for whiteness.

    “The market for the white and brown goods has always been competitive with new entrants distributing imported brands. In spite of this, the segment sustained its topline growth during the year through the introduction of consumer relevant products that are designed for the Nigerian environment. This included revised route to market strategy that comprising traditional trade, modern retail and business to business trading. These strategies result in growth in the washing machine and freezer segments and the maintenance of our position in the refrigeration segment.”

     

    Workers as most treasured assets

    As acknowledged by the consistently high net worth of the company was made possible by its most valued asset: its employees, who he said, “have been diligent in working to improve the quality of our customer service so that the company will continue to deliver higher returns to stakeholders. The Company continued its investment in various leadership training programmes for the senior managers in addition to several existing developmental programmes for the junior levels during the year. The Graduate Management Trainees Scheme is in its eight year and is helping the company’s succession planning programme to be prepared to lead the organisation to the next level.”

    Corporate social responsibility

    To match the demand and growth of education in Nigeria and support the infrastructure gap, the PZ Cussons Foundation has continued to channel most of its resources to educational and physical infrastructure projects. During the year under review, the Foundation embarked upon the following projects, including: renovation of Hostel at Government Secondary Schools, Keffi; renovation of two Dinning Halls at General Muritala Memorial College, Yola; construction and Donation of a Block of Classrooms at Niger Mixed Secondary School, Asaba; furnishing of the Assembly Hall at Queen Elizabeth School, Ilorin, as well as installation of a borehole at Atani Community, Onitsha, among others.

    Future growth plans

    In line with the strategic plans and the policy direction for the forthcoming year, the Company has continued to invest in strengthening the supply chain and improving the operational efficiency and consumer experience, while minimising the cost base.

    Thus, the detergent and Soap manufacturing processes have been further improved to drive efficiencies and meet the increasing demand for these products. These initiatives plus other investment to optimise the supply chain and overall overheads will ensure a flexible and competitive cost structure for your company going forward.

    The company was incorporated in Nigeria on December 4, 1948 under the name of P.B. Nicholas & Company Limited. Its name was changed to Alagbon Industries Limited in 1953 and to Associated Industries Limited in 1960. The company became a public company in 1972 and was granted a listing on the Nigerian Stock Exchange. The name was changed to Paterson Zochonis Industries Limited on November 24, 1976 and in compliance with the Companies and Allied Matters Act 1990, it adopted its present name of Paterson Zochonis Industries Plc on November 22, 1990.