Carex, Imperial Leather and Original Source maker PZ Cussons slumps into the red after Nigerian Naira collapse

Shares in PZ Cussons, the company behind the likes of Carex, Imperial Leather and Original Source, have been cut after the business revealed how a 70 per cent slash to the Nigerian Naira has impacted its finances.

The Manchester-headquartered firm, which is listed on the London Stock Exchange, has reported a revenue of £527.9m for the year to 31 May, 2024, a 19.6 per cent drop compared to the prior 12 months.

PZ Cussons also slumped into the red, with a pre-tax loss of £95.9m, after having reported a profit of £61.8m in the previous year.

In a statement issued to the London Stock Exchange, the business said the devaluation of the Nigerian Naira during the year “has had a significant impact” on its financial performance.

In the aftermath of the results being made public, shares in PZ Cussons fell by almost seven per cent to their lowest level since April.

PZ Cussons has also slashed its dividend by 44 per cent to 2.1p compared to the 3.73p per share pay out it issued in the prior year.

Carex maker progressing with St. Tropez sale

Chief executive Jonathan Myers said: “Over the last 12 months, we have made continued operational progress and delivered against the strategic priorities set out at the start of the year, against the backdrop of macro-economic challenges.

“At the same time, we have taken the important first steps to transform our business and maximise shareholder value, by refocusing our portfolio on where we can be most competitive.

“The period was marked by a 70 per cent devaluation of the Nigerian Naira, which has had significant implications on our reported financials.

“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.

“Elsewhere, we significantly improved trading in our UK personal care business as we returned Carex to growth, maintained our momentum in ANZ, delivered a return to volume-led revenue growth in Indonesia in Q4 and led Childs Farm to a year of profitable, double-digit revenue growth.

“The favourable trends of the second half of FY24 have continued into the new financial year.

“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.

“Against this backdrop, we remain confident in the long-term potential for PZ Cussons as a business with stronger brands in a more focused portfolio, delivering sustainable, profitable growth.”