UK's PZ Cussons says quarterly results in line despite Nigeria pressures

PZ Cussons Plc said on Wednesday its quarterly results were in line with expectations, even as the soaps and cosmetics maker’s prices, volumes and margins in Nigeria remained under pressure.

Macroeconomic conditions have plagued the Imperial Leather brand owner in Nigeria as a lack of liquidity at both consumer and trade levels was shrinking the market for its products, the company said.

However, PZ Cussons said results were in line with its expectations in the first quarter ended Aug. 31, with higher demand in Europe and Asia offseting challenging trading conditions in the African country.

PZ Cussons said new products and cost cuts helped offset challenging trading conditions in Nigeria for the quarter ended Aug. 31.

Shares of the company were up 1.3 percent at 232.4 pence in early trading.

The company has suffered from a slowdown in its largest Nigeria market, forcing it to warn in July of a challenging year ahead after Africa profits declined sharply in the year to May 31.

In a trading update, the company said consumer disposable income in Nigeria remained subdued ahead of elections in that country.

PZ Cussons, which has a more than 130-year-old history, gets about 36 percent of its revenue from Africa and also sells home appliances in partnership with Haier.

The company said it was focussing on optimising price points and sizes across the key brands in its Africa portfolio.

Its Nutricima business, which makes milk and yogurt-based beverages, had moved into a breakeven position from making losses last year, PZ Cussons said.