A squeeze on margins in its Europe and Africa businesses sent half-year profits plunging at Imperial Leather-maker, PZ Cussons PLC (LON:PZC).
Revenue for the six months to November 30 edged 1.9% higher to £385.4mln (H1 16/17: £378.2mln), but pre-tax profits fell to £24.9mln, 37.3% lower than the £34.2mln it posted a year earlier.
READ: PZ Cussons scrubs up well again despite challenging conditions
The FTSE 250 company said strong profitability in Asia was offset by “tough trading conditions” in Europe and Africa which put pressure on margins in “certain business units”.
Margins are expected to pick up in the second half of the year as a result of new product launches and distribution expansion.
The interim dividend was maintained at 2.67p.
‘Solid basis for second half’
“In the first half of the financial year, the group has faced tough trading conditions in many of the markets in which it operates,” said chair Caroline Silver.
“Initiatives are underway to improve performance of these business units [Europe and Africa] and, together with the positive momentum elsewhere in the Group and in particular in Asia, provide a solid basis for improved performance in the second half of the year.”
Shares fell 2.6% early on Tuesday to 321.4p.