British personal care company PZ Cussons says it remains confident to deliver more than half a billion pound in revenue despite facing significant challenges due to the devaluation of the naira.
The company, known for brands such as Carex and Imperial Leather, expects a revenue of over N1 trillion (£520 million) for the financial year ending May 31, 2024, keeping with management expectations.
In the final quarter, trading performance met expectations, with the group forecasting an adjusted operating profit between N105.9 billion (£55 million) and £60 million. Additionally, gross debt is projected to stay within the guided range of N308 billion (£160 million) to £180 million.
The company holds the positive outlook despite a 23% decline in the naira’s value since the third-quarter trading update in April.
Nigeria remains a critical market for PZ Cussons, significantly influencing its overall performance. The company said surplus cash in Nigeria reduced due to efforts to repatriate cash.
The full-year results are set to be released on September 18, 2024.
Blocked Bid
In 2023, PZ Cussons made a bid to acquire the remaining 26.7% stake in its Nigerian subsidiary, PZ Cussons Nigeria, but was blocked by the regulator.
PZ Cussons Holdings in September announced plan to acquire all shares in the Nigeria unit. The firm currently has 73.3 percent interest in the Nigeria unit.
PZ Cussons said the parent company had offered to acquire all of its shares at ₦21 per share. Nigeria’s Securities and Exchange Commission turned down a subsequent N23 per share offer to shareholders.
PZ Cussons Holdings Ltd said last year it believed that the buyout was necessary “to significantly simplify and strengthen operations in Nigeria, creating the foundations for the Nigerian business to deliver against its strategy, building a more agile and innovative business”.
“PZ Cussons has been present in Nigeria since 1899 and expects Nigeria to remain an important market for the Group for many years to come,” he said.
The company has a major market in Nigeria where it sells detergent, soap, cosmetics, refrigerators, freezers and air conditioners products.
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