PZ Cussons Nigeria is set to share N9.9 billion with its shareholders. This comes after a three-year break in dividend payments. The company reported positive retained earnings for the first time since a setback in 2023.
In a notice on Monday, PZ Cussons revealed plans to pay a N2.50 dividend per share for the year ending 31 May 2026. The qualification date is set for 9 October, and payments will be made on 30 October.
Shareholders will have a choice between receiving cash dividends or shares to boost their holdings in the company. Both options need approval at the next annual general meeting in October for the plan to move forward.
PZ Cussons explained, "The reference share price for the purpose of determining the number of shares due to qualifying shareholders who elect for the share option will be a ten-day trading average of the company’s share price on the floor of" the NGX starting on 12 October.
The last time the company paid a dividend was in 2022. It faced major challenges due to foreign exchange losses that led to a N90.3 billion net loss in 2024.
In 2024, PZ Cussons, like many businesses in Nigeria that depend on imported raw materials, reported an FX loss of N157.9 billion. This was because the naira lost over 70 percent of its value against the dollar after significant devaluations starting in 2023.
Since 2024, retained earnings, which are used to pay dividends, had been negative. They only turned positive this year, largely due to a massive profit increase of 349 percent to N45.2 billion.
The profit rise was boosted by proceeds from selling assets totaling N38.7 billion. Turnover during the review period increased by 22.5 percent to N260.5 billion, thanks to better sales in its home and personal care products division.
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