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.”