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Share Price Information for Pz Cussons (PZC)
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Share Price:
86.40
Bid:
85.50
Ask:
86.70
Change:
0.00 (0.00%)
Spread:
1.20 (1.404%)
Open:
86.40
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86.40
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Don't have an account? Click here to register.PZ Cussons warns on consumer demand as Nigeria struggles
Thu, 13th Dec 2018 07:31
(Sharecast News) - Imperial Leather soap maker PZ Cussons said it it expected consumers to remain under pressure in all of its markets as its Nigerian operations were hit by a weaker .economy and currencyIn a first half trading update, Cussons said Europe and Asia had seen continued good performance "as a result of product innovation and distribution expansion"."Africa trading remains challenging as a result of the economic situation in Nigeria," the company said."The overall outturn for the full year will, as in prior years, depend in part on the macro environment in Nigeria during the seasonally-important second half of the year, and we continue to manage that business accordingly."Cussons said Nigerian first half profits would be lower as consumer disposable income remained weak ahead of the general election scheduled for February and "cost challenges" from a further 10% weakening of the naira against the US dollar.There were also extra transport costs from "significant disruption" getting goods cleared into the country."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 company said.Asian operations saw a good performance offset by the weakening of Asian currencies against sterling, the company said.In the UK, a significant number of new product launches took place in the first half, supported by marketing campaigns."This has driven good growth across the key brands of Imperial Leather, Carex and Original Source, with increasing focus on trend-led products such as Imperial Leather 'No Drama Llama' Foamburst and Carex 'Unicorn' handwash," Cussons said.
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