PZ Cussons sales slide due to Nigeria dip and drop in consumer tanning

PZ Cussons sales slide due to Nigeria dip and drop in consumer tanning

Personal care company PZ Cusson has reported a pre-tax profit fall of 37.8 percent for the six months ending November 2016, with a poor performance in Nigeria and a lull in fake tan sales hitting results.

The company saw revenue decrease from £385.9 million to £378.2 million, with sales of its St Tropez self tan range attributing to a fall in European sales, which dropped 6.3 percent to £134 million. PZ Cussons blamed this fall on a lower demand for self tan due to a lacklustre summer.

Nigeria also proved a problem area, with the company coming up against currency controls in the country. This was due to the country reporting a 40 percent devaluation in the naira. In addition the company received an exceptional charge of £15.3 million due to foreign exchange losses – nearly a quarter of its earnings.

While Chairman Caroline Silver suggested the company was still on track to come good on full year expectations, shares fell more than 8 percent.

According the The Standard, Silver said, “The group has faced a backdrop full of challenges… this was by no means unexpected and so, despite this, the results reflect a solid performance with revenue and profit only slightly lower than the previous period.”

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