PZ Cussons trading in line but Nigeria difficult

In an update for 27 January to 13 April, PZ Cussons said overall trading has been in line with expectations and the company is on track for the full year, but warned of difficult conditions in its main market of Nigeria.

The Imperial Leather soap maker said the performance in Europe and Asia offset more difficult trading conditions in Africa. More specifically, in Nigeria, whilst the official naira exchange rate continues to be stable, a lack of availability at that rate is resulting in the majority of dollars being purchased at a premium of 50-70%.

The resultant cost impact is being managed through changes to relative pricing in an environment where trading conditions remain challenging and consumer disposable income is under pressure, the company said.

“Whilst the overall outlook for the financial year remains in line with expectations, the situation in Nigeria remains extremely fluid and is the largest variable to the year-end outturn.”

PZ Cussons will put out another trading update in June after the close of the financial year.

At 0810 BST, shares were down 2.8% to 309p.