Consumer goods manufacturer PZ Cussons reported good performance in Europe and Asia in its half-year results, but warned of challenging trading conditions in Africa.
PZ Cussons, which owns brands such as Imperial Leather and Original Source, said new products and increased distribution had driven its strong trading in the six months to the end of November.
But the results were dragged down by weak performance in Africa, largely due to tough political and economic conditions in Nigeria.
The company said it has suffered from lower disposable income and a weakening of the naira against the dollar in the run-up to the general election in February 2019.
“We expect trading conditions in Nigeria to remain subdued, and we are continuing to actively manage and review the Nigerian portfolio to ensure that we mitigate short term volatility and are best placed for when growth returns to the market,” the company said.
Shares in PZ Cussons were down almost five per cent today.
In Asia PZ Cussons recorded a strong performance, offset by the weakening of Asian currencies against the sterling.
The firm said it expects continuing good performance in Europe and Asia going forward. But it said its overall full-year results would depend on conditions in Nigeria.