PZ Cussons swings to a loss after Nigerian naira devaluation
The Carex soap maker said the devaluation had ‘significant implications on our reported financials’.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.PZ Cussons, the maker of Carex soaps, has seen shares plummet after last year’s 70% devaluation of the Nigerian naira pushed it to a loss.
The FTSE 250 company swung to a £95.9 million loss for the year ending May 2024, down from a £61.8 million profit the year before.
Chief executive Jonathan Myers said that despite “strategic” progress, the devaluation of the naira had “significant implications on our reported financials”.
He added: “We have worked hard to mitigate the impact of this on the group, while continuing to serve Nigerian consumers who are facing unprecedented inflation and economic difficulties.”
We have worked hard to mitigate the impact of this on the group, while continuing to serve Nigerian consumers who are facing unprecedented inflation and economic difficulties
Shares in the company fell 7% on Wednesday, while PZ Cussons also slashed its annual dividend to shareholders by 44% to 3.6p.
It comes after the firm said it was exploring the sale of its entire African business earlier this year, and put its tanning business St Tropez up for sale, as part of a turnaround plan.
Mr Myers added: “We are progressing with our plans to sell St Tropez and have received a number of expressions of interest for our African business, recognising the potential of our brands and people, which could lead to a partial or full sale.”
Russ Mould, an analyst at AJ Bell, said PZ Cussons showed “some signs of progress”, pointing to a reduction in the company’s debt pile.
He added: “However, partly due to accounting changes related to preparing the African unit for sale, the company faces even greater sensitivity to the naira in the current financial year.
“Having been at the helm since 2020, Jonathan Myers will be under pressure to deliver meaningful change and soon, with the divestment of the St Tropez tanning brand in progress.”