PZ Cussons, the maker of Imperial Leather soap, has reported a steady improvement in trading conditions in Nigeria – a market where it makes two-fifths of its sales.
The UK-based consumer brands company took a hit to its sterling-denominated profits after Nigeria moved to a free-floating currency last year, causing the naira to halve in value.
But PZ said on Thursday that Nigeria’s liquidity situation has begun to improve in the second half of its financial year. However, it warned the availability of US dollars for consumers was low, and inflationary pressures still high.
The company said its strategy to boost margins and keep a lid on costs was helping it combat currency volatility and rising prices for raw materials.
In the UK, where PZ owns brands such as Original Source, the trading was “robust”. Sales of its beauty products, which include St Tropez sun-tan lotion, were performing well.
PZ will announce its final year results on July 25.