PZ Cussons has disclosed that it is unruffled by the recent slump in its strained Nigerian business unit.
The company in reaction to its last quarterly result said the outcome of the result allays growing fears about the company’s performance in one of its largest single markets.
According to Reuters, PZ Cussons said in a statement that its ‘quarterly results were in line with expectations.’
The results which reflected the company’s performance in the last quarter that ended on August 31 revealed that shares of the PZ Cussons ‘were up 1.3 percent at 232.4 pence in early trading.’
More so, the introduction of new consumer products and cost cuts was a relief which helped the company to counterbalance some of its recent challenges.
The company’s operations in Nigeria have been affected by certain factors which had an adverse effect on its finances this year.
But as 2018 winds down, PZ Cussons hopes of replicating its 73.13 percent growth in profit in Nigeria after tax in 2017 seem to have been dampened by increased competition, fluctuating oil prices and the scarcity of foreign exchange in Nigeria.
Earlier this month, Global Chairperson of PZ Cussons, Ms Caroline Silver expressed her disappointment with the performance of its Nigerian unit. “Whilst the Group has delivered good profit growth in Asia and a creditable result in Europe, macro-conditions in Nigeria have resulted in a sharp decline in Africa profits for the year and hence a disappointing result for the Group as a whole,” she said while reacting to the full year result of PZ Cussons Nigeria.
The African market has contributed immensely to the company’s yearly growth as it accrues more than 36 percent of its revenue from sales across the continent. However, a financial outlook ahead of the company’s end of the year financial result predicted a bad year for the company and a shrinkage in profit at the year-end after profit came in lower with a record of 48 percent decline in profit after tax for the full year ended May 31, 2018.
PZ Cussons Nigeria currently produces products for personal care, home care,and nutrition, and has delved into the sale of electrical appliances in partnership with Haier Thermocool, TEC. The company is the producer of popular consumer soap in Nigeria, Premier and Joy; Zip, while its milk product, Coast has been in the Nigerian market for more than two decades. PZ Cussons Group is now “focusing on optimizing price points and sizes across the key brands in its Africa portfolio.”