PZ Cussons said its performance in the quarter ended August 31st is in tandem with its expectations.
This information is contained in the company’s trading update which was made available today on the company’s website, ahead of its Annual General Meeting (AGM).
The statement acknowledged that the company’s entire global operations have been experiencing challenges in different markets, particularly so in Nigeria where people’s disposable income is lowered due to the upcoming general election in the country.
The statement went further to state that the company has, however, taken steps towards remedying the situation. Performance improvement will largely be dependent on macroeconomic developments in the economy.
“In Nigeria, consumer disposable income remains subdued ahead of the general elections which are scheduled for February 2019. With prices, volumes and margins continuing to remain under pressure, the business is focussing on optimising price points and sizes across the key brands in the portfolio, whilst the Nutricima business, which was loss-making last year, has now moved into a breakeven position.” – PZ Cussons
As we reported, the company’s operation in Nigeria recorded a 48% decline in profit (i.e., N1.9 billion versus N3.6 billion) according to its full-year financial report ended May 31st. This is despite a 3% increase in revenue which increased from N78.2 billion in 2017 to N80.5 billion in 2018.
In the meantime, positive performances by the company in its European, Asian, and Australian markets will continue to cushion the negative effects of declining profitability in Nigeria.
“In the UK Washing and Bathing division, an acceleration of the pace of new product
launches, together with an upweighted consumer engagement programme supported by increased brand investment, is driving good growth across the key brands of Imperial Leather, Carex and Original Source.”