Shares of Manchester-based soaps and consumer products company PZ Cussons fell about 6% on Thursday after it said its profit before tax for the full year “will be in the range previously indicated, albeit towards the bottom end of the range.”
In a trading update for the year ended May 31, 2018, Cussons said: “Within our interim results announcement in January, we reported that performance in the first half of the year had been constrained by trading conditions in the UK and Nigeria.
“In our trading update in March we reported that trading conditions in these two markets remained difficult and that we expected profit before tax for the full year to be in the range of £80 million to £85 million.
“During the last few months of the year, performance in the UK has been in line with our revised expectations and, whilst trading conditions in Nigeria have tightened further, expected profit before tax for the full year will be in the range previously indicated, albeit towards the bottom end of the range.
“Results in the group’s other markets remain robust with performance in Australia, Indonesia and the group’s beauty division ahead of the prior year.”
In its outlook, Cussons added: “It is expected that macro conditions will remain challenging with general elections in Nigeria and Indonesia falling in the second half of the new financial year.
“At the same time, commodity costs and exchange rates are expected to remain volatile.
“Against this backdrop, we believe the initiatives outlined above, together with management actions being undertaken, will strengthen the group’s brand portfolio to better withstand the subdued levels of consumer confidence and higher levels of competitive intensity which are being faced in most markets.”