PZ Suffers Profit Slump, Blames Northern Insecurity
Incessant insecurity in the North was the cause of a 54% drop in profit says PZ Managing Director, Christos Giannopoulos. He disclosed this at the company’s 64th Annual General Meeting (AGM) in Abuja yesterday.
According to him profits declined 54% to N2.4 billion from N5.22 billion in 2011 due to the terrorism activities that led to the loss of lives and property in the region. The terrorism also impacted on sales for companies like PZ.
However, the MD says the situation is starting to improve and the company may return to profitability sooner than expected.
He said, “We are happy now that the situation in the North has improved tremendously since six months ago, and we are beginning to see that our sales are increasing.
“Therefore, I am very confident that in the next financial year, it will improve. Our sales in the North during the peak (of the crisis) were down by over 40 per cent, and this translates into 54 per cent drop in profit.”
Despite the lull in profitability, headline revenue increased 10% to N75 billion from N66 billion in 2011.