PZ Cussons said on Tuesday that devaluation of the Nigerian currency naira would adversely impact its profit next year, but forecasted a higher 2023 full-year profit encouraged by a strong fourth-quarter performance in Africa.
The Manchester-based company said it aimed to offset higher costs from its Nigerian business due to the currency devaluation through its pricing strategy.
"While the naira devaluation will have a one-off impact to the group's near-term reported financial performance, we believe the medium-to-long-term prospects for our Nigerian business will be much improved by the economic reforms" Jonathan Myers, CEO said in a statement.
The naira has been highly volatile since the central bank liberalised foreign exchange trading earlier this month.
Fighting Margin Pressures
Consumer-facing companies have been raising prices to fight margin pressures from elevated costs of everything from raw materials, transport and labour due to persisting inflation, even as households hesitate to unfurl their purses.
The London-listed company is expecting annual adjusted profit for the full-year ended 31 May to be £70 million ($89.09 million), compared with £66.6 million a year earlier.
PZ Cussons is also expecting its annual group revenue to jump about 10% to £655 million.
Celebrity Demand
On 13 April the company said that its performance in Europe & the Americas was buoyed by strong demand for its self-tanning brand, St. Tropez US and the combined Imperial Leather and Cussons Creations portfolio.
St. Tropez is known to be popular among celebrities including reality television star Kim Kardashian and American model Ashley Graham.
Read More: St. Tropez-Maker PZ Cussons Revenue Rises On Better Margins, Price Increases
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