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Fashion & brands

PZ Cussons sees spike in hygiene products demand amid coronavirus pandemic

However, the Imperial Leather soap group's beauty business has been hit by social distancing measures

PZ Cussons PLC (LON:PZC) dipped on Thursday on the announcement its hygiene products sold in the UK, Australia and Asia have seen a spike in demand during the coronavirus outbreak.

In the UK, the manufacturer said it is struggling to produce enough of its highly sought after Carex hand wash, sanitiser gel products and Imperial Leather soap as it cannot source enough raw materials.

READ: PZ Cussons warns on profits, boss leaves after 13 years

Conversely, the group added, its beauty business worldwide has been hit by social distancing measures, with “significant marketing activities” being cancelled.

The shower gel maker added that the situation in Nigeria - one of its biggest markets - is also uncertain due to pressure caused by the fall in oil prices.

The FTSE 250-listed firm said it has cut capital expenditure but is not receiving state support to pay workers in the countries where it operates.

In the third quarter to February 29, PZ Cussons noted that its revenue declined against last year, albeit at a reduced rate compared to the first half.

As of February 29, the group said it had headroom of £147mln under committed loan facilities and £116mln net debt, and it has maintained its profit guidance for the year to May.

Shares dipped 2% to 176.4p on Thursday morning.

--Adds shares--

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