21st Jul 2015 06:49
LONDON (Alliance News) - PZ Cussons Tuesday reported a drop in profit in its recently-ended financial year, although this was in line with its own and market expectations, as it continues to be hit by currency headwinds.
The personal healthcare products provider, which makes bath products including Imperial Leather and Original Source, reported a 32% drop in pretax profit in the year ended May 31 to GBP84.0 million from GBP123.7 million the year before. Revenue slipped to GBP819.1 million from GBP861.4 million.
PZ Cussons said that operations in Africa were hit by "disruption" in northern Nigeria, referring to Islamist militant group Boko Haram, and also by the outbreak of ebola in Nigeria, as well as the devaluation of the naira. While the naira exchange rate has been stabilising, low world oil prices continue to hit the economy suggesting further risk of currency devaluation, the company said.
In Asia, profitability was hurt by a reduction in margins in the Australian Home Care category as a result of difficult trading conditions and a weak Australian dollar, PZ Cussons said, while profitability also was cut in Indonesia by the weak rupiah, despite good revenue growth in the Baby Care and non-Baby Care portfolios.
Meanwhile in Europe, revenue and profit were ahead of the prior year in the UK, PZ Cussons said, while Greece saw a drop in revenue but still achieved profit growth across the porfolio of edible oils, cheeses and spreads.
PZ Cussons will pay a total dividend of 8.00 pence, up 3.1% on the 7.76p paid the prior year.
"Performance since the year-end has been in line with expectations. Whilst the outlook remains challenging, the group's focus on its values, robust long-term strategy, our innovative product pipeline, and the strategic steps we have taken, provide a strong and exciting platform for future sustainable growth," Chairman Richard Harvey said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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