By Favour Nnabugwu
Shareholders of PZ Cussons Nigeria Plc have called on the Federal Government to give tax relief to production companies across board to enable them plough back same into their businesses so as to caution the effects of foreign exchange.
Meanwhile, PZ Cussons has announced N2.129,689 billion profit for the year 2016 as against the N4.570,787 billion recorded in year 2015 representing 53.4 percent decrease over the previous year.
The Chairman of PZ Cussons Nigeria Plc, Chief Kolawole Jamodu gave the details of the company’s transactions in his statement at the company’s 2016 Annual General Meeting [AGM] held in Abuja.
Jamodu said that the negative impact of the decrease in Nigeria’s domestic growth was more severe on the industrial sector which experienced a contraction of 2.24 percent in 2015 and the decline accelerated further to 4.49 percent quarter one of 2016
The company’s chairman said that PZ Cussons’ consolidated revenue decreased by 4.9 percent from N73.1 billion to N69.5 billion due to the adverse economic conditions referred above.
‘’In all, our balance sheet remains strong with total assets of N74.4 billion compared to N67.4 billion in the previous year, the N1.7 billion of export rebates that are receivable from the Nigerian government mention in the prior year report are included in our total assets’’
He confessed that the business environment for fast Moving Consumer Goods [FMCC] sector was extremely challenging during the period under review.
Explaining how the company was able to declare 50 kobo per share in spite of the economic difficulties facing it, the chairman noted that 3 kobo was taken from the revenue reserves of the company added to the earlier 37kobo proposed to make up for the 50kobo per share.
The chairman assured the shareholders that the unclaimed dividend put at about N2billion would be paid back to the company’s accounts.
However, the National Coordinator, Independent Shareholders Association, Sir Sunny Nwosu who spoke to journalists on behalf of its members said that the reduction in company tax by the federal authorities will further assist the companies to rediscover themselves and keeps moving.
He also called on the management of PZ Cussons to begin the process of exporting some of its agricultural products to enable it earn extra foreign exchange for more opportunities.
The management of the consumer products company has however, declared a 50kobo dividend per share amounting to N1,99 billion payable after the deduction of withholding tax. as against 81kobo in declared last year.