Soap maker PZ Cussons recently said that it expects only a minimal surplus cash position remaining in its Nigeria business beyond what is required for trading by the end of its current financial year.
The company had earlier noted that the devaluation of Nigeria's currency would adversely impact its profit and in September offered to buy out minority shareholders of PZ Cussons Nigeria amid plans to de-list the business from the Nigerian stock exchange.
First-Half Trading
PZ Cussons, however, said that its first-half trading has continued to be strong in its Nigeria business and many of its brands have held or gained market share there.
"We expect to achieve an improvement in both gross and operating profit margins in the first half of the year, despite very high levels of inflation," the company noted about its Nigerian business.
Inflation
Inflation in Africa's largest economy had risen to its highest level in nearly two decades earlier this year after the country scrapped a popular but costly subsidy on petrol and devalued the currency.
The Manchester-based company said it expects to deliver a robust year-on-year operating margin improvement in the first-half period for the overall group.
Read More: PZ Cussons Looks To Delist Nigeria Unit With Offer To Minority Shareholders
News by Reuters, edited by Donna Ahern, Checkout. For more A-brand news, click here. Click subscribe to sign up for the Checkout print edition.
