PZ Cussons says trading is tough after first-half miss

 
City A.M. Reporter
BRITISH soap and shampoo maker PZ Cussons said its first half profit was below expectations and it expected trading conditions to remain tough given pressures on consumer spending.

The maker of Imperial Leather soaps and Carex anti-bacterial hand washes said high raw material costs and adverse exchange rate movements impacted margins, while trading conditions remained tough, particularly in Australia, Greece, Thailand and the Middle East.

“The trading environment will continue to be difficult given increasing pressures on consumer spending power in all markets, continued high levels of promotional activity in developed markets and the UK in particular, and ongoing high levels of input costs,” the company said in a statement yesterday.

PZ Cussons added, however, that it had continued to see good revenue growth in Britain, Indonesia and Nigeria and said its strong financial position would enable it to invest in growth opportunities in Europe, Asia and Africa.