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PZ Cussons expects currency devaluation to hurt its short-term financial performance

PZ Cussons, Currency devaluation

CEO PZ Cussons, Dimitris Kostianis (Image credit: PZ Cussons)


Consumer goods giant PZ Cusson Nigeria Plc has said that it expects the economic reforms of Nigeria’s new administration to hurt the financial returns of its business in Nigeria, albeit in the short term.

Referring specifically to the expected effect of the liberalisation of the currency market, Chief Executive Officer Jonathan Myers said, “the Naira devaluation will have a one-off impact on the Group’s near-term reported financial performance.” 

Impact of economic reforms on the company’s finance

The company noted that in monetary terms, it expects a reduction in its 2023 financial report, revenues, profits, and share earnings. Part of the guidance released by the company earlier today said:

The imperial leather manufacturer further assured that it can endure the macroeconomic shocks resulting from the new policies of the federal government.

PZ Cussons’ plan to offset the cost

Regarding the cost of raw materials, which is set to increase, the firm noted that it hopes to offset this through competitive pricing as it has successfully done in the past.

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Financial standing of PZ Cussons

Today, the company reported its like-for-like revenue growth for the fourth quarter of 2023 at 6.7%. This represents a 6.1% growth for the 2023 financial year.

The group estimates its revenue for the fiscal year 2023 to be in the region of £655 million. The consumer goods giant also projects its profit before tax to be around £70 million.

The backstory

Businesses in diverse sectors of the economy have been reacting to the new macroeconomic reforms of President Tinubu’s administration.

On his inauguration, President Tinubu announced the end of the much-beleaguered fuel subsidy regime. The Central Bank under his watch also announced the unification of all foreign exchange markets in the country.

Experts and industry players have noted that the reforms have both positive and negative impacts on the manufacturing sector. However, it is hoped in the long run, the overall economy benefits.

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