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PZ Cussons Has Strong Trading In Europe And Asia But Nigeria Weighs

LONDON (Alliance News) - Consumer good firm PZ Cussons PLC said Thursday it has seen a good ...

Alliance News 13 December, 2018 | 9:26AM
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LONDON (Alliance News) - Consumer good firm PZ Cussons PLC said Thursday it has seen a good performance in Asia and Europe in the first half of its financial year, but that its trading in Africa remains challenging.

Shares in PZ Cussons were down 5.9% at 211.40 pence on Thursday morning.

In the six months ended November 30, the maker of Carex soap and St Tropez sun tan lotion said its Europe and Asia regions have performed well due to "product innovation and distribution expansion".

The company launched a "significant number" of new products during its half year, including Imperial Leather 'No Drama Llama' Foamburst body wash.

Its Asian performance also was good, although this was offset somewhat in sterling terms by weaker Asian currencies.

In Africa, the PZ Cussons's performance was hurt by Nigeria, where consumer disposable income remains weak ahead of a general election, scheduled for February 2019.

Another 10% weakening of the naira against the dollar occurred during the period, which presented "cost challenges", PZ Cussons said, as did higher transport costs due to a disruption in clearing goods at the port.

Nigeria's contribution to profit for the first half will be lower than in the year-ago period due to pressure on prices, volumes and margins.

"We expect trading conditions in Nigeria to remain subdued, and we are continuing to actively manage and review the Nigerian portfolio to ensure that we mitigate short term volatility and are best placed for when growth returns to the market," the firm said.

PZ Cussons expects its strong Europe and Asia performance to continue into its full financial year, but said the overall result will depend on the Nigerian macro-economic environment during the "seasonally-important second half".

By Anna Farley; annafarley@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
PZ Cussons PLC 192.40 GBX -0.72 -

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Alliance News

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