PZ Cussons profit falls as Nigerian consumers feel squeeze

(Sharecast News) - PZ Cussons' annual profit fell by almost a quarter as the consumer goods company felt the effect of squeezed consumer spending in Nigeria and to a lesser extent the UK. The maker of Imperial Leather soap and Original Source shower gel said it expected the current financial year to remain challenging.Pre-tax profit for the year to the end of May dropped 23% to £66.6m as revenue fell 5.8%, or 2.3% at constant currency, to £762.6m.Profit in Cussons' biggest region, Africa, fell 78% as high inflation in Nigeria caused sales, prices and margins to fall. Profit in Europe was little changed at £60.8m as squeezed households in the UK spent less on Cussons' washing and bathing products. In Asia, profit rose 17% to £18.6m.Chairwoman Caroline Silver said: "Whilst the group has delivered good profit growth in Asia and a creditable result in Europe, macro-conditions in Nigeria have resulted in a sharp decline in Africa profits for the year and hence a disappointing result for the Group as a whole. In Europe, good growth in the group's beauty division has helped to partially offset the more challenging trading conditions faced in the UK washing and bathing division."The FTSE 250 company held the final dividend at 5.61p a share, leaving the annual payout unchanged at 8.28p a share.The company said: "We expect macro conditions to remain challenging in most of the markets in which we operate with general elections in Nigeria and Indonesia falling in the second half of the new financial year. Commodity costs and exchange rates are expected to remain volatile."Cussons shares, down 40% in the past year, fell 3% to 211.20p at 08:33 BST.