Shares in PZ Cussons drop after warning on inflationary backdrop in UK market

 
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PZ Cussons says consumers are more cautious (Source: Getty)

PZ Cussons, the consumer goods company which includes Imperial Leather soap and Original Source shower gel in its portfolio, has warned that Brits are "shopping cautiously".

In a statement released ahead of its AGM, the company said: "In the UK, it is increasingly clear that consumers are shopping cautiously reflecting general cost inflation outstripping wage growth, and broader economic uncertainty."

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Shares in PZ Cussons dropped more than two per cent this morning.

But the firm said it was on track to deliver full-year growth to operating profits, due to cost-cutting and new product launches.

In markets outside of the UK, conditions were mixed. The group cited "general tough trading conditions" in Australia, but said performance had improved.

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Meanwhile growth continued in Indonesia, but in Nigeria the effect of inflation has made the environment "challenging" despite Naira stabilising more recently.

In line with the rest of the market, PZ Cussons said it has experienced tougher trading on big-ticket items in its electricals unit, since these sales rely on discretionary spending.

The company concluded: "Whilst tough trading conditions are evident in most markets and expected to continue, brand initiatives, tight cost control and our deep knowledge of our markets provide a solid basis for the year ahead."

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