Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
A-Brands

Cussons Sees Lower Profit As Africa Challenges Mount

By Dayeeta Das
Share this article

Cosmetics and soap maker PZ Cussons Plc warned of a big fall in full-year profit on Tuesday, hit by sluggish demand and port disruptions in its important Nigerian market.

The maker of Imperial Leather soap and Carex handwash said adjusted pretax profit for the year ending May was now expected to be around £70 million (€80.5 million), down from £80.1 million (€92.2 million) a year earlier.

Analysts on average were expecting a profit of £80.37 million, according to a Refinitiv Eikon consensus based on three brokerages.

The company's shares dropped 8.4% to 191.9 pence in early trade.

PZ Cussons also said adjusted first-half pretax profit fell 1.5% to £32.8 million (€37.7 million).

ADVERTISEMENT

Challenges In Africa

The company has been struggling to turn around its African business, which contributes over a third of its revenue, with margins being squeezed amid dwindling demand.

In Nigeria, its most important market in Africa, the company said disposable incomes had remained weak ahead of a general election scheduled for February.

PZ Cussons had already warned in December of a lower first-half profit contribution from Nigeria as it faced disruptions in getting goods into the West African nation.

It said on Tuesday profit from Africa plummeted 70.7% to £1.2 million in the half-year, and added it would take a £5.5 million hit in full-year adjusted profit due to ongoing port disruption.

ADVERTISEMENT

Overall half year revenue fell 10.4% to £335.1 million pounds.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days