SHAREHOLDERS of PZ Cussons Nigeria Plc have called on the company’s management to be more accountable and return to profitability as it considers plans to remain listed on the Nigerian stock exchange.

They made the call during the company’s Facts Behind the Figures Presentation on Wednesday, February 12 at the Nigerian Exchange Limited (NGX) house in Lagos.

The ICIR can recall that in September 2023, PZ Cussons (Holdings) Limited, the parent company of PZ Cussons Nigeria and majority shareholder of the company, revealed plans to delist from the Nigerian stock market and proposed an initial N21 per share offer to the minority shareholders to be implemented under an arrangement.

The offer was, however, rejected by the minority shareholders, who insisted on an N40 per share payout after the Securities and Exchange Commission (SEC) threw away the PZ board’s delisting application following shareholders’ refusal to accept their offer.

At the time, the minority shareholders criticised the parent company for not being sincere in the offer, accusing it of trying to short-change them.

In November 2024, the shareholders further accused the company of not being transparent and accountable in its operations after its board proposed an increase for its director’s remuneration to N326.59 million for the financial year ending May 31, 2025, besides sitting allowance.

They raised concerns over the sale of its assets at the company’s 76th Annual General Meeting (AGM) held on Thursday, November 28. 2024.

In February 2024, The ICIR reported that PZ Cussons showed signs of insolvency having reported an unhealthy financial position as total liabilities exceeded total assets and posted over N46 billion loss after tax in its 2023/2024 second quarter (Q2) financial results.

PZ Cussons blamed the negative financial performance and position of the company in the past financial reporting periods on the federal government reforms on fuel subsidy removal and naira devaluation.

At the Facts Behind the Figures Presentation on Wednesday, PZ Cussons chief financial officer, Oludare Ebenezer Elusakin, noted that the policies impacted the company’s operating costs, especially in the areas of energy and materials costs.

Elusakin, while presenting the company’s half-year financial performance for the period ended November 2024 to the shareholders, said the energy costs went up by 43 per cent.

He noted that the company operated with a foreign exchange rate of N1,601/$1 to a dollar of N1,695/$1 during the half-year period to November 2024.

He revealed that the company’s net assets remain negative, and loss after tax settled at N5.5 billion.

The company’s revenue appreciated by 42 per cent to N96.5 billion in the half year from N68.1 billion.

While gross profit improved by 23 per cent to N27 billion from N21.9 billion, operating profit before tax rose by eight per cent to N10.9 billion from N10.1 billion.

To deal with the company’s liabilities, the CFO said the management has set certain plans in motion without specifics.

However, shareholders expressed their displeasure over the initial plan by the company to delist from the Nigerian stock market.

They berated the company for not paying dividends to the investors in the last few years and not revealing such in their strategic plans.

They urged the board to improve productivity, leverage market opportunities, and exude good financial habits to drive sustainable expansion and return to profitability.

The national president of New Dimension Shareholders, Patrick Ajudua, urged the company to aggressively restructure their foreign-denominated loans, converting them into naira to shield the company from dollar volatility.

He also urged the company on the need to negotiate for extended payment plans from outstanding facilities to create a financial headway to help it swiftly return to a positive cash flow and profitability.

“I will urge them on the need to have a long-term strategic vision aimed at returning to profitability within the immediate to near future.

“You need to pursue this ambition with vigour, building strong partnerships and leveraging market opportunities to drive sustainable expansion,” Ajudua suggested.

He said since the management of PZ Cussons was assuring investors that the company, which celebrated its 125 years of operation in Nigeria in 2024, has come to stay, that it should follow through with its vision strategy and enhance its balance sheet.

He further urged the management to improve the company’s brand, product innovation, market expansion, and digital transformation.

“This is very key to us, and I can assure you that we shareholders are going to give you the support to return to profitability and commence payment of dividends within a short while,” Ajudua added.

The national chairman of the Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie, queried the company for not paying dividends to shareholders for many years.

He noted that rather the company was busy indulging in the sale of its assets.

“Rebrand your products for better performance,” Okezie urged PZ Cussons.

“I think you need to refinance and consider backward integration to reduce FX challenges,” the executive vice chairman of Highcap Securities Limited, David Adonri, also suggested to the company.

While responding to some of the worries of the shareholders, the chief executive officer of PZ Cussons Nigeria, Dimitris Kostianis, craved the indulgence of the investors to support and challenge the company’s management under his leadership.

He said the company welcomed their suggestions and would try to do them, assuring that the company would make its business better where possible.

He hinted that a lot of strategic thoughts and consideration have gone into how the company could improve its brands and return to profitability.

“We will be looking for your support as well because that will help us to overcome the problem,” Kostianis said.