Thu, 15th Mar 2018 07:00
15 March 2018
PZ Cussons Plc
PZ Cussons Plc, a leading international consumer products group, today issues the following trading update in respect of the year ended 31 May 2018.
At the time of our interim results announcement in January, we reported that performance in the first half of the year had been constrained by trading conditions in the
It is now apparent that profit for the full year will fall short of expectations and the board anticipates that profit before tax will be in the range of
Results in the Group's other markets remain robust with performance in
A number of initiatives are underway to ensure the Group returns to profitable growth for the following year and an initial outline of these is set out below.
Following the significant cost inflation of recent years, the Nigerian consumer's discretionary income remains under pressure with subdued buying levels. As a result the usual peak season uplift has not occurred to the expected level. Consequently inventory levels in the trade remain high leading to intense competition, most noticeably in the milk category, which in return is resulting in lower volumes, prices and margins.
In light of these pressures the Group has initiated the following actions:
· A reassessment of the structure of the Group's operating model to further reduce the overhead base
· A review of product costs with a focus on areas such as packaging reduction
· A review of the Group's milk business in
· A re-prioritisation of the Group's new product pipeline to focus on fewer, bigger projects requiring lower levels of complexity
We believe that the initiatives outlined above will strengthen the Group's brand portfolio to better withstand the subdued levels of consumer confidence and higher levels of competitive intensity which are being faced in most of the markets in which it operates.
The Group's balance sheet remains strong with net debt around 1.5 x EBITDA.
A further trading update will be made on 14 June 2018 after the close of the financial year.
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For further information contact:
PZ Cussons Plc
Brandon Leigh - Chief Financial Officer
Tel: 0161 435 1236
Tim Linacre / Guy Scarborough
Tel: 020 7457 2020