UK consumer goods conglomerate PZ Cussons has provided an update on its performance in Asia and Africa, where weakened exchange rates are impacting business.
In Asia, PZ Cussons explained that a further weakening in exchange rates are “increasing local costs, reducing consumer disposable income and reducing results on translation to sterling”. Looking at Indonesia – where PZ Cussons key brands include Carex, Imperial Leather, Cussons Baby and Cussons First Years – revenue growth is reported to have “continued to be strong despite the more challenging consumer environment as a result of slower GDP growth and a weaker exchange rate”. Meanwhile, in Australia, the company reported a “modest improvement” in the homecare trading environment with progress across personal care and beauty.
Over in Nigeria, PZ Cussons’ largest and most diverse single market, the exchange rate has remained relatively stable against the US dollar “although low oil prices continue to contribute to an environment of tight liquidity with additional foreign exchange restrictions imposed for certain imported items,” PZ Cussons noted. However, this was not reflected across all of the company’s African markets; in Ghana and Kenya, weakened exchange rates were seen to have impacted reported results.
Looking ahead, PZ Cussons identified weakening exchange rates as an ongoing challenge particularly in Australia, Indonesia and Nigeria. However, the company is remaining positive about NPD, which it hopes will offset these difficulties.
