PZ Cussons (LSE:PZC) shares rose 9% in early trading after the soap maker returned to profit in the first half of its financial year.
It reported a £6.4 million pre-tax profit, a sharp turnaround from last year’s £94.2 million loss, despite a 10% drop in revenue to £269.3 million.
The drop in revenue was mainly due to the Nigerian Naira losing 55% of its value against the British pound.
However, CEO Jonathan Myers said trading met expectations, with solid growth in the UK, Indonesia, and Australia.
In the UK, strong Christmas sales for Sanctuary Spa helped drive the company’s best performance in three years. Indonesia recorded its third consecutive quarter of growth, while Australia and New Zealand brands gained market share.
With a stabilised Naira and strategic changes underway, PZ Cussons expects to meet profit targets for the full year and has raised its adjusted operating profit forecast to £52-58 million.
The stock rose 6.79p to 86.19p