The Nation Newspaper

Tag: PZ

  • PZ Cussons invests $130m in growth initiatives

    PZ Cussons invests $130m in growth initiatives

    PZ Cussons Nigeria Plc has invested not less than $130 million in strengthening and expanding its business operations in Nigeria as it reassures Nigerian shareholders of continuing commitment to value creation and fairness.

    Chairman, PZ Cussons, United Kingdom, Richard Harvey, who spoke after a visit and tour of part of Nigerian operations by members of board of directors of the PZ Cussons Nigeria’s parent company, 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 inaugurated 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.

    Harvey spoke in company of PZ Cussons Nigeria’s managing director, Christos Giannopoulos.

    Giannopoulos added that while PZ Cussons had gradually increased its shareholding in the Nigerian business to demonstrate its commitment, it has no plan whatsoever to alter the current shareholding structure.

    He said the conglomerate is committed to sustaining its listing on the Nigerian Stock Exchange (NSE) while working to create values for all shareholders.

    “We have some 85,000 shareholders, who love us and we love them, as of now there is no plan to increase our shareholding in the Nigerian subsidiary. We are committed to our shareholders and the Nigerian economy,” Giannopoulos said.

    He said the conglomerate plans to achieve growth target above the national Gross Domestic Products (GDP) growth rate over the next years.

    He noted that PZ Cussons believes in the development of local content as integral part of its production process pointing out that over the years, PZ Cussons has always sourced and used local raw materials as much as possible in its productions.

    Audited report and accounts of PZ Cussons Nigeria for the year ended May 31, 2013 had shown considerable improvement in the underlying profitability of the group, with increasingly efficient procurement management and internal cost control moderating the probable impact of a sluggish top-line.

    The report showed that while sales slipped by 1.12 per cent, profits before and after tax jumped by 77.6 per cent and 110 per cent respectively. The improvement in the bottom-line impacted on the underlying returns to shareholders as earnings per share increased from 61 kobo in 2012 to N1.23 in 2013.

    Turnover closed May 2013 at N71.34 billion as against N72.15 billion recorded in 2012. Profit before tax meanwhile rose from N4.31 billion to N7.65 billion. Profit after tax also doubled from N2.54 billion to N5.32 billion.

    The company distributed N2.22 billion as cash dividends, representing a dividend per share of 56 kobo, an increase of 30 per cent on 43 kobo paid for the previous year.Z Cussons Nigeria Plc has invested not less than $130 million in strengthening and expanding its business operations in Nigeria as it reassures Nigerian shareholders of continuing commitment to value creation and fairness.

    Chairman, PZ Cussons, United Kingdom, Richard Harvey, who spoke after a visit and tour of part of Nigerian operations by members of board of directors of the PZ Cussons Nigeria’s parent company, 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 inaugurated 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.

    Harvey spoke in company of PZ Cussons Nigeria’s managing director, Christos Giannopoulos.

    Giannopoulos added that while PZ Cussons had gradually increased its shareholding in the Nigerian business to demonstrate its commitment, it has no plan whatsoever to alter the current shareholding structure.

    He said the conglomerate is committed to sustaining its listing on the Nigerian Stock Exchange (NSE) while working to create values for all shareholders.

    “We have some 85,000 shareholders, who love us and we love them, as of now there is no plan to increase our shareholding in the Nigerian subsidiary. We are committed to our shareholders and the Nigerian economy,” Giannopoulos said.

    He said the conglomerate plans to achieve growth target above the national Gross Domestic Products (GDP) growth rate over the next years.

    He noted that PZ Cussons believes in the development of local content as integral part of its production process pointing out that over the years, PZ Cussons has always sourced and used local raw materials as much as possible in its productions.

    Audited report and accounts of PZ Cussons Nigeria for the year ended May 31, 2013 had shown considerable improvement in the underlying profitability of the group, with increasingly efficient procurement management and internal cost control moderating the probable impact of a sluggish top-line.

    The report showed that while sales slipped by 1.12 per cent, profits before and after tax jumped by 77.6 per cent and 110 per cent respectively. The improvement in the bottom-line impacted on the underlying returns to shareholders as earnings per share increased from 61 kobo in 2012 to N1.23 in 2013.

    Turnover closed May 2013 at N71.34 billion as against N72.15 billion recorded in 2012. Profit before tax meanwhile rose from N4.31 billion to N7.65 billion. Profit after tax also doubled from N2.54 billion to N5.32 billion.

    The company distributed N2.22 billion as cash dividends, representing a dividend per share of 56 kobo, an increase of 30 per cent on 43 kobo paid for the previous year.

     

  • Lagos pupil wins in PZ Cussons Chemistry challenge

    Lagos pupil wins in PZ Cussons Chemistry challenge

    Sixteen-year-old Emmanuel Ejiogu Onyekachi of Miketoy College, Ikotun, Lagos State, made history as he emerged winner of the maiden edition of PZ Cussons Chemistry Challenge (PZCCC).

    The SS3 pupil beat off competition from three others at the grand finale held in Lagos last weekend.

    He came first in each stage of the competition which had 1,270 candidates in stage one, 97 in stage two and four finalists; garnering a cumulative score of 83.5 per cent.

    For his feat, Emmanuel was rewarded with N700, 000, a laptop, a trophy and gold medal, while his chemistry teacher, Mr Jossy Ogunniyi got N100, 000, Chemistry books worth N100, 000 were also presented to his school.

    Commissioner for Education, Mrs Olayinka Oladunjoye who was represented by the Director of Private Education and Special Programmes, Mrs Sewanu Amosu, lauded PZ Cussons for rekindling the passion for sciences in secondary schools.

    “Lagos State Government appreciates PZ Cussons for starting this off in Lagos. It shows that all is not lost in Nigeria. We still have hope; all we need to do is to continue to groom the children and have the right teachers who conscientious and committed. I am also happy that they remembered the teachers. They were also rewarded as the saying goes that teachers’ rewards are not only in heaven,” she said.

    Mrs Amosu implored students to do more in terms of their academic activities.

    “Once you are in school, learn and pay attention to what the teacher is saying. You should read outside the syllabus. Not just go on the Internet to surf all these social media alone. You can gain a lot from the Internet; like you have people solving Chemistry, Mathematics, Biology and other subjects problem now on the Internet,” she said.

    Chief Nike Akande, a Director, PZ Industries and former Minister of Industries, said she was happy with the outcome of the competition, especially with the winner, Emmanuel.

    “This award today is to encourage students to have interest in Chemistry. And you can see that some of the students are very intelligent. One was coming top all the time; there were many schools in Lagos State that put in for the competition and one student was consistently coming first. This is a great achievement for our country. There is hope,” she assured.

    Obi Uchenna David of Barachel College, Ifako-Agege, the first runner-up with 62.2 per cent, was presented with a cheque of N500, 000, a laptop and silver medal, while his chemistry teacher, Mr Ojo Sunday also went home with N60, 000. His school also had chemistry books worth N50, 000.

    With a cumulative score of 56 per cent, Mgbemena Thankgod of Leeland International College, Oregun-Ikeja, finished as second runner-up and got N400,000 cash prize, a laptop and bronze medal. His chemistry teacher, Mr Ugwoke Johnson Ikenna, won N40,000 while his school received N50,000 worth of chemistry books.

    Third runner-up Victor Ike-Okoro of Top Grade Secondary School, Surulere pulled a total of 44 per cent and had a cash prize of N300, 000, a laptop and a consolation medal while his chemistry teacher, Mr Odinibe John Nnani got N20, 000 and his school had N50,000 worth of chemistry books.

    Relieved at the end of the rigorous final stage, which included a practical session, Emmanuel expressed gratitude to God, his parents, teachers and the organisers, as well as the other finalists who he said provided him stiff competition.

    He admitted that the practical session was the most challenging: “I was shivering during the practical. While mixing the chemicals, I did something that would have messed everything up but I quickly made up for it.”

    The first child in a family of seven, Emmanuel said he would like to study chemical engineering and would strive to win more competitions.

    He urged PZ Cussons Foundation to incorporate other science subjects into the competition and also organise it on a national scale.

     

  • PZ Cussons grows profit by 109%

    PZ Cussons grows profit by 109%

    PZ Cussons (Nigeria) Plc rode on the back of improved cost management and internal efficiency to double net earnings in the immediate past year, prompting the board to recommend distribution of N2.22 billion as dividends to shareholders.

    Audited report and accounts of PZ Cussons for the year ended May 31, 2013 showed that while sales slipped by 1.12 per cent, profits before and after tax jumped by 77.6 per cent and 110 per cent respectively. The improvement in the bottom-line impacted on the underlying returns to shareholders as earnings per share increased from 61 kobo in 2012 to N1.23 in 2013.

    Turnover closed May 2013 at N71.34 billion as against N72.15 billion recorded in 2012. Profit before tax meanwhile rose from N4.31 billion to N7.65 billion. Profit after tax also doubled from N2.54 billion to N5.32 billion.

    The board of directors of PZ Cussons has recommended payment of N2.22 billion as cash dividends, representing a dividend per share of 56 kobo, an increase of 30 per cent on 43 kobo paid for the previous year.

    The performance in 2013 represented a major recovery for the fast moving consumer good company, which had suffered significant decline in the previous year.

    Audited report and accounts for the year ended May 31, 2012 had shown turnover of N72.16 billion as against N65.9 billion in 2011. Gross profit however dropped to N16.18 billion as against N18.45 billion. Profit before tax also halved to N4.31 billion compared with N8.03 billion in 2011 just as profit after tax dwindled from N5.7 billion to N2.5 billion.

    PZ Cussons appeared to have benefitted from extensive cost restructuring and internal efficiency management.

    With costs constraints and efficiency issues becoming evident in its performance, the global conglomerate had started global restructuring of its operations including closure of manufacturing operations in several countries and concentration in some countries including Nigeria.

    The global restructuring project was sequel to high costs of operations that have increasingly impacted on the global profitability of the conglomerate.

    According to a document on the global restructuring operations with details for West Africa, PZ Cussons group developed the global restructuring programmes to ensure that its supply chain cost base remains at a competitive level given sustained rise in raw material costs together with significant wage inflation in emerging markets.

    The report indicated that PZ Cussons, which holds 66.81 per cent in PZ Cussons (Nigeria) Plc, plans to close down its manufacturing facilities in Ghana and concentrate manufacturing operations in Nigeria.

    With the impending closure of the Ghanaian manufacturing facilities, Nigeria and other unidentified third parties will provide supply to Ghana, a major win for Nigeria. Manufacturing operations create better employment opportunities, and will further complement the growing human resources for marketing activities.

    “We will use the opportunity to make Nigeria a centre of excellence in Africa,” the document indicated.

    The group will also focus on reducing significantly its overhead at a number of other manufacturing facilities.

    “We believe the benefits of this project will be seen in the new financial year through lower supply chain overheads, wage inflation mitigation as well as reduction in high capital maintenance cost that would have been associated to the closed or restructured facilities. It will ultimately show an improved performance and higher returns on investments,” the document had indicated.

    Besides, the global restructuring would see the group close down its manufacturing facilities in Australia and restructure that of Poland as it seeks to move to a variable cost model for its developed market homecare businesses. Just like the emerging markets, supplies will be outsourced to third parties.

    PZ Cussons has manufacturing plants in Ilupeju, Ikorodu; both in Lagos State and Aba, in Abia State. The Nigerian operations include manufacturing and marketing of soaps, detergents, health and beauty products, electrical goods and nutritional products. More than 77,000 Nigerian individual and institutional investors hold equity stakes in the conglomerate.

     

  • PZ Cussons launches Chemistry Challenge

    Outstanding performance in Chemistry would earn some secondary school pupils scholarship grants if they participate in the PZ Cussons Chemistry Challenge which will hold from July to September in Lagos.

    PZ Cussons Foundation, the corporate social responsibility arm of PZ Cussons Nigeria Plc, launched the competition for SS1 and SS2 pupils in Lagos last Friday.

    Chairman of the Foundation, Prof Emmanuel Edozien, announced that pupils can enter for the competition online from June 3 to 21.

    Explaining the stages of the competition Mrs Yomi Ifaturoti, Director, Corporate Affairs and Administration, PZ Cussons Nigeria Plc, said after entries are received, the first stage of written quiz would be conducted in the six education districts in July.

    The best 100 pupils from each district would progress to stage two where another round of written assessment would be made to determine the best four students that would advance to the third and final stage. Each of the four finalists would make a presentation to the panel of judges to determine their positions.

    The top four winners would be rewarded with scholarship grants, laptops and medals; while their teachers and schools would get cash and book prizes.

    The first placed winner would get N700,000 worth of scholarship, the teacher, N100,000 and the school N100,000 worth of chemistry books. The second would get N500,000 – with N60,000 for the teacher and chemistry books worth N50,000 for the school.

    The second runner up will win N400,000, the teacher, N40,000 and the school, N50,000 worth of books. The third runner-up would win N300,000 worth of scholarship, a laptop and a consolation medal while the teacher would get N20,000 and the school N50,000 worth of chemistry books.