• Tuesday, July 16, 2024
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BusinessDay

PZ Cussons’ half-year profit sinks deeper on weak consumer spending

PZ Cussons Foundation

Cosmetics and soap maker, PZ Cussons Plc, the parent company of PZ Cussons Nigeria reported a decline in half-year profit for the period ended 30th November on the back of a weak consumer spending in its major markets.

According to the makers of Nunu Milk, Imperial Leather soap and Morning fresh soap, its Africa revenue plummeted due to weakness in its mass-market Home and Personal Care brands offsetting strong growth in Electricals while profitability was impacted by continued consumer pricing pressure, continuation of charges associated with the port in Lagos and the closure of the borders limiting exports.

The company noted that in Europe & the Americas, whilst Imperial Leather and original source continued to demonstrate market share growth, continuing consumer uncertainty and well-documented challenges in the UK high street adversely impacted overall revenue and profit. Results remained solid in Beauty with continued growth in retail sales of St Tropez in the USA.

Read also: PZ Cussons slips from grace

PZ also reported lower revenue for the first half, but expressed optimism for the second half.

“A stronger second half is expected subject to no further worsening of the economic and trading environments across our key geographies,” the company said in a statement.

Still, full-year revenue and adjusted profit before tax is expected to be modestly below the prior year on a like-for-like basis, the company said

It announced that chief executive Alex Kanellis will retire from the company on 31 January 2020 after 13 years in the saddle.

During his tenure, he oversaw significant development of the group, including the operational restructuring of the business, the creation of the Beauty division, the development of the joint venture businesses in Africa and, most recently, the resetting of the Group’s strategy to begin the process of returning the Group to profitable growth

Pending the appointment of the new chief executive officer, Caroline Silver, a non-executive chair will become executive chair with effect from 1 February 2020.