LONDON (ShareCast) - High levels of disruption in the northern region of Africa and the 8% depreciation in the Nigerian Naira continued to negatively impact sales at PZ Cussons, dragging half-year group operating profits 4% below those for the same period last year.
The toiletries and beauty products manufacturer said the macro environment in Nigeria in the second half, which includes the February presidential elections and potential further currency volatility, "will be a key contributing factor to the overall result for the full year".

The group did see continued good levels of growth in the south of the country, in particular in the electrical goods business and in the two food and nutrition joint ventures.

The situation was better in both Europe and Asia, where operating profits were higher than the comparative period last year.

Excluding the impact of exchange rates, operating profits were flat period on period, comprising good organic growth in the underlying business together with the positive impact of the Five:AM acquisition offsetting the reduction in profits from Poland as a result of last year's Home Care brands sale.

The group saw a strong performance in its UK washing and bathing division, despite challenging trading conditions.

It described its performance in the beauty division as good, with growth in the US and Australia offsetting tougher trading conditions in the UK.

"The group remains focussed on a dynamic and fast brand renovation and innovation programme, an ongoing cost reduction programme and successful delivery of new areas of growth such as Rafferty's Garden, Five:AM and the PZ Wilmar joint venture," the FTSE 250-listed company said.

"These initiatives will contribute towards offsetting the continuing macro challenges, particularly in Nigeria, and the reduction in profits from Poland as a result of last year's Home Care brands sale."

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