Soaps and cosmetics maker PZ Cussons Plc (PZC.L) said on Wednesday consumer disposable income at its largest Nigeria market remained subdued ahead of elections in the country, with prices, volumes and margins remaining under pressure.
Macroeconomic conditions have plagued the Imperial Leather brand owner in Nigeria as a lack of liquidity at both consumer and trade levels was shrinking the market for its products, the company said.
However, PZ Cussons said results were in line with its expectations in the first quarter ended Aug. 31, with higher demand in Europe and Asia offseting challenging trading conditions in Nigeria.
PZ Cussons said , ” In Nigeria, consumer disposable income remains subdued ahead of the general elections which are scheduled for February 2019. With prices, volumes and margins continuing to remain under pressure, the business is focussing on optimising price points and sizes across the key brands in the portfolio, whilst the Nutricima business, which was loss making last year, has now moved into a breakeven position.
” In conclusion, Europe and Asia continue to perform well, whilst improvement in Africa will largely be dependent on the macro environment in Nigeria during the remainder of the year, the company said Wednesday in a statement signed by Brandon Leigh.
PZ Cussons is a major British manufacturer of personal healthcare products and consumer goods. It operates worldwide, especially in Africa and Commonwealth nations.