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PZ Cussons Blames The Nigerian Operating Environment For Its Woes

Editor by Editor
December 10, 2015
in Uncategorized
Earnings Guidance: PZ Cussons Plc signals improved Q3 performance
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PZ Cussons Plc, the Imperial Leather soap maker with a major presence in Nigeria have blamed the Nigerian operating environment for its slowing performance according to reuters.

Group operating profits were broadly flat versus comparative period.

Strong performance in Europe offsetting a difficult trading environment in Nigeria and impact of weaker currencies in both Asia and Africa.

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The company also predicted that performance in certain categories in Nigeria in second half is likely to continue to be affected by ongoing squeeze on consumer disposable income.

PZ Posted a depressing result in the first quarter of 2015 where its revenue recorded a flat growth YoY compared with the previous year. Revenue was relatively N14.9 billion (-0.47% YoY).

PZ Cussons being a consumer goods company is very much exposed to the weakness in purchasing power of a lot of Nigerians.

Another problem it has had is the insurgency in the North which has badly hurt growth from that part of the country.

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