PZ Cussons Nigeria Plc has proposed a scrip dividend arrangement that will allow shareholders to receive their final dividend in cash, additional shares or a combination of both following a sharp improvement in the company’s financial performance.
The consumer goods company reported profit after tax of N45.17 billion for the financial year ended May 31, 2026, representing a 349 percent increase from N10.07 billion recorded in the previous year.
Revenue increased by 22 percent to N260.46 billion from N212.63 billion, while gross profit rose 27 percent to N73.27 billion from N57.71 billion.
Operating profit climbed to N77.06 billion from N18.92 billion, representing a 307 percent increase, while profit before tax advanced 364 percent to N77.32 billion from N16.66 billion.
The stronger earnings performance also coincided with a significant recovery in the company’s balance sheet, with net assets improving to N66.64 billion from a negative position of N17.34 billion in the previous financial year.
PZ Cussons said the turnaround followed balance-sheet restructuring, asset optimisation and the settlement of legacy foreign currency-denominated exposures that had weighed on the business.
Against the improved financial position, the board recommended a final dividend of N2.50 per ordinary share for the 2026 financial year, representing a total gross dividend of approximately N9.93 billion.
The dividend is fully funded from the company’s N45.17 billion profit after tax. Pasted markdown
Under the proposed scrip dividend arrangement, qualifying shareholders will have the option to receive their entitlement entirely in cash, convert the net dividend into newly issued PZ Cussons ordinary shares, or choose a combination of cash and shares.
Shareholders who do not make a valid election will automatically receive their dividend in cash, subject to applicable withholding tax.
Qualifying shareholders are those whose names appear on the company’s register of members as of the close of business on October 9, 2026.
PZ Cussons said the arrangement is designed to provide shareholders with greater flexibility while allowing those who choose shares to increase their holdings without paying brokerage commission on the allotment.
The structure will also enable the company to retain part of the cash that would otherwise be distributed as dividends, providing additional funding for working capital and strategic expansion initiatives.
The number of scrip shares to be allotted will be determined by dividing the net cash dividend elected for conversion by a reference share price.
The reference price will be calculated using the simple average closing price of PZ Cussons shares on the Nigerian Exchange over the 10 trading days between October 12 and October 23, 2026.
Withholding tax will first be deducted from the gross dividend before the amount available for conversion into shares is determined.
No fractional shares will be issued, with any residual cash entitlement arising from the calculation to be paid directly to the shareholder.
Shareholders interested in receiving scrip shares are required to submit a valid election form to First Registrars and Investor Services Limited on or before October 23, 2026.
Those who prefer to receive their dividend entirely in cash are not required to take any action. Pasted markdown
The proposed arrangement remains subject to shareholder approval at PZ Cussons Nigeria’s 78th Annual General Meeting scheduled for October 28, 2026, as well as approvals from the Securities and Exchange Commission, Nigerian Exchange Limited and Corporate Affairs Commission.
Shareholders will also be asked to approve amendments to the company’s Memorandum and Articles of Association and authorise the issuance and allotment of the new shares required for the scrip dividend programme.
If the required approvals are not obtained, affected dividend entitlements will be paid entirely in cash. Pasted markdown
The proposed scrip shares will rank equally with PZ Cussons Nigeria’s existing ordinary shares from the date of allotment, including eligibility to participate in dividends and other distributions declared after that date.
