(Alliance News) - Imperial Leather soap maker PZ Cussons PLC on Tuesday reported a drop in annual profit and revenue as problems in Africa, especially Nigeria, continue.
In addition, PZ Cussons has set out a new strategy to address these problems and return to profitable growth.
For the year to May 31, FTSE 250-listed PZ Cussons reported a 6.8% drop in revenue to GBP689.4 million, with like-for-like sales declining 2.6%.
This helped pretax profit slump 38% to GBP37.0 million, with adjusted pretax profit falling 13% to GBP69.8 million. The fall in profit was for the most part caused by impairments in Australia and Nigeria.
PZ Cussons is paying a 5.61 pence per share final dividend, taking the year's total to 8.28p, flat on the year before.
PZ Cussons had a particularly difficult year in Africa. Revenue slipped 15%, but 6.4% excluding currency movements, to GBP232.4 million, with like-for-like sales down 6.4%.
The company has now posted a GBP1.0 million adjusted operating loss in the region, from GBP6.3 million profit a year prior.
By comparison, Europe & the Americas revenue fell 0.2%, and by 0.1% at constant currency, to GBP264.0 million, with adjusted operating profit down 6.1% at reported rates to GBP57.1 million.
In Asia Pacific, PZ Cussons' revenue fell 4.1%, and 1.2% constant currency, to GBP193.0 million, with adjusted operating profit rising 9.7% reported rates to GBP20.4 million.
"The group's results for the year were mixed. A combination of solid performances in Europe & the Americas, with strong growth in the Beauty business unit and Asia Pacific, compared with very disappointing results in Africa," said Non-Executive Chair Caroline Silver.
"As we anticipated at the half year, the adjusted profit before tax of GBP69.8 million reflects the negative impact of the extremely tough macroeconomic conditions in Nigeria, which has historically been a key profit driver."
"We cannot rely upon short term economic conditions improving markedly in our key markets and are therefore taking action to reposition the group to return to profitable growth. We have today announced a new strategy, built around Focus, Scale and Accelerate," she continued.
The new strategy will see a focus on core Personal Care and Beauty brands, the simplification of Nigerian operations, and the disposal of non-core brands.
Shares were down 1.3% on Tuesday morning at a price of 224.00 pence each.