PZ Cussons Nigeria Plc has announced a proposed scrip dividend arrangement, offering shareholders the flexibility to receive their final dividend in cash, additional shares, or a mix of both, following a remarkable surge in financial performance. The consumer goods giant reported a profit after tax of N45.17 billion for the year ended May 31, 2026, marking a staggering 349 percent increase from N10.07 billion in the prior year. Revenue grew by 22 percent to N260.46 billion, while gross profit rose 27 percent to N73.27 billion. Operating profit also soared to N77.06 billion, up 307 percent from N18.92 billion, and profit before tax climbed 364 percent to N77.32 billion.
This strong earnings turnaround was supported by significant improvements in the company’s balance sheet, with net assets turning positive at N66.64 billion, reversing a negative position of N17.34 billion from the previous financial year. PZ Cussons attributed the recovery to strategic balance-sheet restructuring, asset optimisation, and the settlement of legacy foreign currency-denominated exposures that had previously burdened operations. The board has recommended a final dividend of N2.50 per ordinary share, amounting to a total gross dividend of approximately N9.93 billion, fully funded from the N45.17 billion profit after tax.
Under the scrip dividend plan, qualifying shareholders—those whose names appear on the company’s register as of October 9, 2026—can choose to receive their dividend entirely in cash, convert it into newly issued shares, or opt for a combination of both. Shareholders who do not submit a valid election will automatically receive their dividend in cash, subject to applicable withholding tax. The number of new shares allotted will be calculated by dividing the net cash dividend (after tax) by a reference share price, which will be based on the simple average closing price of PZ Cussons shares on the Nigerian Exchange over the 10 trading days from October 12 to October 23, 2026.
The structure allows shareholders to increase their holdings without paying brokerage fees on the allotment, while enabling the company to retain part of its cash for working capital and strategic growth initiatives. No fractional shares will be issued; any remaining cash from the conversion calculation will be paid directly to the shareholder. Interested shareholders must submit their election forms to First Registrars and Investor Services Limited by October 23, 2026. Those choosing cash need not take any action.
The proposed scrip dividend is subject to approval at the company’s 78th Annual General Meeting on October 28, 2026, as well as regulatory clearances from the Securities and Exchange Commission, Nigerian Exchange Limited, and the Corporate Affairs Commission. Shareholders will also vote on amendments to the company’s Memorandum and Articles of Association to authorise the issuance of new shares. If approvals are not granted, all dividends will be paid in cash. The new scrip shares will rank equally with existing ordinary shares from the date of allotment, including eligibility for future dividends and distributions. This move underscores PZ Cussons’ commitment to shareholder value and long-term sustainable growth.
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