Exchange rates put PZ Cussons under pressure

INTERNATIONAL consumer products company PZ Cussons has warned that the lack of availability of dollars in its main market of Nigeria could have an impact on its results.

Whilst the official naira exchange rate in NIgeria continues to be stable, a lack of availability at that rate is resulting in the majority of dollars being purchased at a premium of 50-70%.

“The situation in Nigeria remains extremely fluid and is the largest variable to the year-end outturn,” it said.

“The cost impact is being managed through changes to relative pricing in an environment where trading conditions remain challenging and consumer disposable income is under pressure,” it added in a trading update.

Cussons reassured investors that trading in  Europe and Asia had offset these more difficult trading conditions in Africa and that overall performance for the period had been in line with expectations.

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