Reuters reports British soap and shampoo maker PZ Cussons Plc said its first-half operating profit fell 4 percent, hurt by tough trading conditions in Nigeria and a devaluation of the currency Naira.
Cussons, the maker of Imperial Leather soaps, said a potential further volatility in the currency and the upcoming presidential elections in its core market Nigeria could be key contributing factors for the full year.
Nigeria is the company’s biggest market, though it also sells in Ghana and Kenya. Africa accounted for about 42 percent of Cussons’ revenue in the year ended May 31
It’s ironic that despite the huge margin drop for PZ the share price has rallied upwards from about N17 to N31 nearly 100% gain. PZ Cussons first quarter earnings reported in September this year was down 30% year on year.