PZ Cussons, the consumer-goods company known for its popular brands like Imperial Leather and Morning Fresh, experienced a pretax loss of £94.2 million ($118.7 million) for the first half of fiscal 2024. This loss was primarily attributed to the significant devaluation of the Nigerian Naira, which had a major impact on the company's financial performance. Despite these challenges, PZ Cussons remains optimistic about its long-term growth potential.
Financial Performance and Revenue Decline
In comparison to a profit of £40.5 million for the same period last year, PZ Cussons reported a pretax loss of £94.2 million. The company's revenue also saw a decline of 18%, with a total of £277.1 million for the six months ended December 2.
Impact of Naira Devaluation
Chief Executive Officer Jonathan Myers highlighted the devaluation of the Nigerian Naira as the most significant challenge faced by the company. Over the past year, the Naira has weakened by approximately 70%, marking the largest drop in its history. PZ Cussons had previously stated that macroeconomic developments in Nigeria would heavily influence its results for fiscal 2024.
In response to the material devaluation of the Naira, the board made the decision to reduce the interim dividend by 44%. The revised dividend now stands at 1.50 pence per share.
PZ Cussons remains committed to navigating these challenges and is confident in its ability to achieve long-term growth despite the current economic climate.