PZ Cussons Plc (PZC.L), a consumer products group, said Thursday that its Group operating profits for the half year to November 30 were broadly flat versus the comparative period.
In its trading update, the company noted that a strong performance in Europe offset a difficult trading environment in Nigeria and the impact of weaker currencies in both Asia and Africa.
In the UK, first-half performance in the washing and bathing division has been strong. The beauty division has performed particularly well across its key markets.
The company made good progress overall across Asian markets, despite the challenges of increased costs from weaker exchange rates, reduced consumer disposable income and reduced results on translation to sterling.
Looking ahead, the company said its performance in Europe and Asia is expected to continue to be robust in the second half.
Performance in certain categories in Nigeria in the second half is likely to continue to be affected by the ongoing squeeze on consumer disposable income and by the tight environment of foreign exchange liquidity.
PZ Cussons said: “The strength of the group’s brand portfolio and innovation pipeline continues to ensure that the market shares of our products remain strong in all markets.
“Performance in Europe and Asia is expected to continue to be robust in the second half.
“In Nigeria, the home and personal care and milk businesses are expected to continue to perform well. However, if current economic conditions persist, performance in the electricals business during the seasonal second half is expected to be significantly lower and trading in the PZ Wilmar joint venture will be impacted by restrictions on foreign exchange liquidity.
“The group’s balance sheet remains strong and well placed to pursue new opportunities as they arise.”
The company will announce its interim results on Tuesday 26th January.
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