UK beauty conglomerate PZ Cussons appeared positive in its latest financial update amid challenging trading conditions in most of its markets, not least Nigeria.
The country, which is PZ Cussons’ largest market, has seen its naira currency stabilise after a period of devaluation, which saw it plummet 25% in the second half of the financial year against the US dollar.
In its trading update for the year ended 31 May 2015, PZ Cussons noted that the group did suffer a short period of lost trading days during Nigeria’s presidential elections last month.
However, in personal care and home care, growth was achieved in its value add portfolio “driven by a significant brand renovation programme”. The company picked out Premier, Nigeria’s number one selling bar soap, as an example of a brand that is gaining ground here; Premier recently launched into the shower gel category, a small but growing sector in Africa. Meanwhile, in its electricals business, PZ Cussons reported another strong year, driven by its Haier Thermocool brand.
Looking ahead, PZ Cussons stated: “While the naira is currently stable there remains a risk of further currency devaluation. The market is currently adjusting relative pricing and consumer spending power is likely to be impacted in the short term by the imported inflation.”
In other regions, Europe and Asia were high points for the company. In Europe, all brand performed well in the UK washing and bathing division with Imperial Leather benefiting from the relaunch of its entire range. St Tropez’s latest launch – gradual tan in-shower – was also said to be a highlight for PZ Cussons, being a first-to-market product. St Tropez performed well in both the UK and US.
Meanwhile, in Indonesia, the Cussons Baby brand was said to have delivered strong revenue growth, with a number of new launches. Performance in Thailand and the Middle East were in line with expectations.
The group’s full year-end results will be released on 21 July.
