PZ Cussons results to be in line with expectations as Nigeria improves

Imperial Leather, Carex and Original Source maker PZ Cussons expects full year results to be in line with forecasts as it has traded well in all regions, particularly as Nigeria hits its peak season.

The consumer goods group said that its balance sheet remains “strong” with cash generation for the quarter ended 12 April.

Nigeria accounts for more than a third of group sales and the company had been battling with the violent slump in the value of the naira versus the dollar of about 25% in the last financial year.

The FTSE 250 company said that there has been “some improvement in liquidity” in interbank and secondary markets although exchange rates in the secondary markets continues to be “volatile”.

Cussons was was upbeat about its performance in Nigeria as personal care, home care, electricals, and food and nutrition have traded “relatively well in an environment where ongoing changes to relative pricing are required given the short term volatility in costs”.

The company added that its diverse portfolio of brands and price points "continues to work well in an environment where the consumer remains under significant inflationary pressure”.

In Europe, the performance in the washing and bathing division was “robust” with new product launches and with the impact of margin improvement initiatives offsetting higher costs as a result of the weaker pound.

In the beauty division, performance has been good across Sanctuary, St Tropez, Charles Worthington and Fudge.

New product launches and margin improvement activities have improved the profitability of the Australian business despite “challenging trading conditions”, while there was “good growth” in Indonesia with the relaunch of the Cussons childrens range and new Imperial Leather products.