Menu

PZ Cussons, the consumer goods giant, has reported that its after-tax profits in Nigeria, a key African market, fell by 46 percent year-on-year in the six months ended November 30, 2015.

In an unaudited financial statement released on the Nigerian Stock Exchange on Wednesday, PZ Cussons said its after-tax profits fell to N779.45 million in the six months ending on November 30, compared with N1.44 billion reported in a similar period in the previous year. Revenues also fell by 3 percent year-on-year to N30.62 billion in the period under review, compared with N31.66 billion reported in the previous year.

The maker of healthcare and cosmetic products attributed the massive decline in its earnings to the weak trading environment in Nigeria caused by lower disposable incomes, foreign exchange shortages, and the depreciation of the naira against the pound sterling.

PZ Cusson’s weak earnings in Nigeria dragged down the company’s overall earnings. Group sales fell 0.2 percent year-on-year to £385.9 million in the six months ending on November 30th, while pre-tax profits fell 3.7 percent to £42.1 million.

Nigeria is PZ Cusson’s largest single market, with operations in personal care products, with brands such as Imperial Leather, Carex, Premier, Cussons baby, etc; home care products, with brands such as Morning Fresh and Zip; food and nutrition products, with brands such as Nunu, Olympic, Coast, etc; and electrical appliances, with brands such a Haier Thermocool.

"These are a steady set of results in what have been challenging markets," said Chairman, Richard Harvey. "A strong performance in Europe has offset a more difficult trading environment in Nigeria and the impact of weaker currencies in both Asia and Africa."

Chibuike Oguh is Financial Nigeria's Frontier 'Markets Analyst