Global consumer goods manufacturer, PZ Cussons has debunked rumours of the company pulling out its operations in Nigeria. Chief Executive Officer of PZ Cussons Nigeria Plc, Christos Giannopoulos disclosed this when he said reports about the company’s intention to pull out are untrue.
While describing the viral reports about the company’s ‘unannounced pullout’ as false, Giannopoulos said regardless of the tough economic conditions, PZ Cussons remains committed to serving Nigerians.
The PZ CEO explained that the trading statement issued to the London Stock Exchange (LSE) was clear on PZ Cussons’ continued operations in Nigeria. He stated,
“While these conditions prevail, we will maintain our strong market shares in key product categories in Nigeria until growth returns to the market.
“This year, 2019, we shall be celebrating 120 years of making life better and adding value to Nigeria. In our 120 years of doing business in Nigeria, we have faced different conditions and come out stronger at the end of each phase.”
PZ Cussons had disclosed that its financial performance for full-year 2019 (which ends in May) will not be very profitable. This situation, according to the company, is largely due to an underwhelming performance by its Nigerian subsidiary, PZ Cussons Nigeria Plc.
Sluggish demand and a number of other economic challenges in the country combined to cause poor performance. To this end, it expects profit before tax to be around £70 million and profit after tax to stand at £32.8 million.
Recall that Nairametrics reported back in September 2018, PZ Cussons subtly hinted at low profitability prior to publishing its financial statement for the quarter ended August 31st of last year.
A statement by the company had acknowledged that PZ Cusson’s entire global operations were experiencing challenges in different markets, especially in Nigeria where people’s disposable income is lowered due to the upcoming general election in the country.
The company then issued yet another trading update in December last year, this time warning that its half-year financial result (which ended in November), could entail a loss.
