Jihadists and Ebola deal profit blow to PZ CussonsComments Off on Jihadists and Ebola deal profit blow to PZ Cussons
Nigeria is the Imperial Leather soapmaker’s biggest market, but the nation is suffering tremendous political instability in the north through the actions of Islamist militant group Boko Haram.
The Nigerian naira was also heavily devalued in the second half of PZ Cussons’ financial year, because the country was struggling with falling oil prices.
Pre-tax profit was £89.6 million, down from £125.1 million last year, and revenue slipped 4.9% to £819.1 million.
But investors were prepared for the poor results (HSBC recently warned of “the unclear outlook in Nigeria”), so shares fell only 1.39% to 355p.
They were also buoyed by an increase in the dividend for the 42nd consecutive year, this time up 3.1% to 8p a share.
The UK division made up for some of PZ Cussons’ African woes.
More than 70% of its British brands have been relaunched or refreshed. A new in-shower fake tan product for its St Tropez brand has proved so popular that the group produced an additional one million bottles.