PZ Cussons warns of lower profits due to Nigeria’s currency devaluation.

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On February 7th, PZ Cussons Plc (PZC.L) issued a warning of diminished annual profit alongside a reduction in its interim dividend, citing pressure from the devaluation of the Nigerian currency. This announcement led to a 15-year low in shares of the soap maker.

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Shares in PZ Cussons, known for brands like Imperial Leather soap and Carex hand gel, plummeted by as much as 14% to 110 pence during morning trade. The company anticipates an adjusted operating profit ranging between 55 million to 60 million pounds for the fiscal year ending May 31st, a decline from 73.3 million pounds recorded the previous year.

Analysts, according to a company-provided consensus from last September, had expected an operating profit in the range of 61.5 million to 68.2 million pounds. CEO Jonathan Myers highlighted the significant challenge posed by the devaluation of the Nigerian naira, which has weakened by approximately 70% compared to a year ago, marking the largest drop in the currency’s history.

PZ Cussons, with Nigeria as one of its major markets, expressed its intention to conclude discussions with minority shareholders of PZ Cussons Nigeria (PZ.LG) to privatize the business by the end of the financial year. Additionally, the company cited weaker sales in beauty products and a softer Indonesian market in the first half of the year.

However, sales of personal care products in the UK remained resilient. PZ Cussons announced an interim dividend of 1.5 pence per share, down from 2.67 pence in the previous year.

Editorial Staff
Editorial Staffhttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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