PZ Cussons PLC (LON:PZC) said its performance in the quarter to the end of August had been in line with expectations and that a good performance in Europe and Asia had offset challenging trading conditions in Nigeria.
The soaps and cosmetic maker said an acceleration in the pace of new product launches in its UK washing and bathing units, as well as further investment in consumer engagement, continued to drive good growth across its key Imperial Leather, Carex and Original Source brands.
READ: PZ Cussons slides as profit barely within forecast following Nigerian market contraction
Good growth was being achieved across its Sanctuary, St Tropez, Charles Worthington and Fudge beauty brands, driven by new-product launches as well as expansion into new on and offline channels, PZ Cussons said.
However, the FTSE 250 group added that subdued levels of disposable income in Nigeria had put prices, volumes and margins in the country under pressure. It added that the business would focus on optimising price points and sizes across its key brands, but that the Nutricima business, which was loss-making last year, had now moved into a breakeven position.
PZ Cussons said it had delivered a solid performance in Australia across all areas of its business during the period, while in Indonesia its Cussons Baby range continues to strengthen its number one position in the market.
“Notwithstanding the continued challenges faced by consumers in all markets, good performance in Europe and Asia has offset challenging trading conditions in Nigeria, with overall results underpinned by a robust and innovative product pipeline and tight control of costs…improvement in Africa will largely be dependent on the macro environment in Nigeria during the remainder of the year,” PZ Cussons’ CEO Brandon Leigh said in a statement.