LONDON (ShareCast) - (Sharecast News) - PZ Cussons reported first-quarter trading was in line with expectations as growth in Europe and Asia offset problems in Nigeria.


The maker of Imperial Leather soap said its performance in the three months to the end of August was supported by new products and tight cost control.

In the UK, new washing and bathing products and a marketing push drove good growth of Imperial Leather, Carex and Original Source, Cussons said in a trading update before its annual meeting.

In Nigeria, the company's biggest market, high inflation squeezed consumers' spending power and put pressure on Cussons' prices, volumes and margins. The FTSE 250 company said its Nigerian business was working to produce products at the right price and in the right sizes.

Cussons said: "Europe and Asia continue to perform well, whilst improvement in Africa will largely be dependent on the macro environment in Nigeria during the remainder of the year."

The update marked a continuation of the company's troubles in Nigeria, which helped push profit down by almost a quarter in the year to the end of May. First-quarter growth in the UK was an improvement on last year when hard-pressed households spent less on Cussons washing and bathing items.

Shore Capital analyst Darren Shirley said the update was "relatively resilient" but he added: "Africa is the catalyst required to stimulate a return to profit and share price outperformance ... with no evidence of this in sight."

Cussons said though consumers in all markets were under pressure beauty brands such as Sanctuary, St Tropez and Charles Worthington sold well in the first quarter. Business was solid in Australia and Indonesia, it said.

The company's shares, down 26% since the start of 2018, rose 3% to 236.4p at 10:07 BST.

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