Shares of PZ Cussons Nigeria gain over 24% in February, eyes recovery from 2024 level 

Recently, the Board of Directors of PZ Cussons Nigeria PLC resolved to convert $34.26 million of its outstanding loan into equity, aiming to reduce debt and fortify the company’s balance sheet.

This amount is part of a $40.26 million loan provided by its parent company, PZ Cussons Holdings Limited, in 2022 to help manage rising raw material and operational costs, which increased further due to the devaluation of the naira.

In late December 2024, the company released its interim financial statement for the half-year ending November 30, revealing revenue of N96.4 billion, up from N68 billion the previous year, while also slashing pre-tax losses from N73.7 billion to N5.5 billion in 2024.

So far in February 2025, the company’s shares have risen over 20%, surpassing N25 as it seeks to reclaim the N38 level reached in March 2024.

PZ Cussons is experiencing a long-term bullish trend, following a notable pullback in 2024 which the stock is currently correcting from.

Fortunately, from the fourth quarter of 2024, the company’s shares began to recover, climbing back to N24.30 by December, supported by a market volume of N74.3 million shares.

In mid-February 2025, the Board announced its decision to convert a portion of the outstanding loan provided by its parent company in 2022, totaling $34.26 million, into equity.

While the reasons for the company’s stock surge in February 2025 are not fully clear, the decision to convert the loan into equity, along with positive signs of recovery in its interim financial statement for the half-year ending November 30, 2024, likely boosted investor confidence in the stock.