Nigerian unrest hits PZ Cussons

Social unrest in Nigeria triggered the maker of Imperial Leather’s second profits warning in four months.

PZ Cussons, which also makes Original Source and Carex, saw shares slump in early trading after admitting weak sales in its biggest market, Nigeria, would leave its performance in the year to the end of May “some way below expectations”.

The problems were caused by social instability in the north of the country and a removal of a fuel duty subsidy, which has hit people’s disposable incomes.

The group said in a statement: “Given the importance of Nigeria to the group, the impact of the continuing tensions in the country will be significant, resulting in the group’s overall performance being some way below expectations.”

PZ Cussons warned on profits in December, when it said margins were being squeezed by high levels of promotions and the outlook for several of its markets would continue to be difficult.

But in the UK the group, which also owns the Charles Worthington haircare and St Tropez tanning brands, has performed in-line with expectations between 25 January and 26 March despite high levels of special offers in supermarkets. It was helped by new product launches and the recent acquisition of the Fudge haircare brand.