Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
PZ Cussons slashes dividend and warns on profits as Nigerian naira plummets
(Sharecast News) - PZ Cussons, the consumer products group behind brands like Carex and Imperial Leather, delivered a profit warning to shareholders on Wednesday and cut its interim dividend by nearly a half as a result of a significant slide in the Nigerian naira in the first half. The naira is currently 70% weaker than it was a year ago, the biggest drop in the currency's history, PZ Cussons chief executive Jonathan Myers said in a statement, plummeting 30% since the end of PZ Cussons' first half on 2 December.
"As we set out in September 2023, macroeconomic developments in Nigeria would be the key determinant of the FY24 results. Whilst we continue to make good progress in managing this volatility, the further devaluation in recent weeks will inevitably impact our FY24 results," he said.
The company is now forecasting full-year adjusted operating profit at reported rates of exchange to be in the range of £55-60m for the 12 months to 31 May 2024, compared with consensus forecasts of around of £61.5-68.2m as of September. That's down from £73.3m the previous year.
Revenues in the first half slumped 17.8% or £59.8m to £277.1m, with £52.9m of that decline related solely to the devaluation of the naira. Like-for-like revenues, however, grew 2.2%.
The company has taken actions to increase prices "significantly" in Nigeria in response to the devaluation of the naira and corresponding increase in input costs, as well as increase the number of stores served.
PZ Cussons took an operating loss of £89.7m for the half, compared with a profit of £39.2m previously; but if currencies were constant it would have reported an operating profit of £30.6m, down just 7.8% on the year before.
Myers said the company was taking the "prudent step" to cut its dividend in light of the results, with half-year payout falling to just 1.5p per share, down from 2.67p previously.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.