PZ Cussons Nigeria posts first quarter loss as low consumer demand hurt sales

PZ Cussons Nigeria Plc, on Friday announced a net loss of ₦208 million for the first quarter of 2018/19 financial year ending on 31 August.

The consumer goods company which has a diverse product line that includes electricals, personal and homecare products, dairy brands under the Nutricima business line and others said that the loss came as a result of low patronage of its products due to subdued consumer disposable income. Net revenue fell by 14.3% to ₦15.9bn from ₦18.5bn in the same period in 2017.

In a trading update ahead of its Annual General Meeting (AGM), the British parent company of the Nigerian unit said that consumer spending in Nigeria will remain weak leading up to the general election, which is scheduled for February 2019. With prices, volumes and margins continuing to remain under pressure, the business is focusing on optimizing price points and sizes across the key brands in the portfolio.

However, it happily noted that its Nutricima dairy business which had been loss making last year has now moved into a breakeven position.

PZ Cussons Nigeria manufacturers a wide range of dairy products under its Nutricima business line that includes Nunu, Olympic and Coast milk brands as well as drinking yoghurt “Yo!”.

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