At this point it might be fair to question exactly what role Nigeria plays for PZ Cussons given it often seems to mar the company’s updates.
The country is a big contributor, accounting for nearly a third of PZ Cussons’ revenue, but volatility in the currency and sometimes the country itself often seem to be a problem and may prompt questions about whether a sale of this part of the business could aid the long-term stability of the group.
AJ Bell’s Russ Mould said: “The latest issues in Nigeria, which relate to the revaluation of the naira, detract from what is otherwise a solid update from PZ Cussons.
“The company is on track for a third year of revenue growth and the price increases it has been able to push through have supported an improvement in margins and speak to the strength of a brand portfolio which includes Carex and Imperial Leather.
“The company seems confident it will be a case of short-term pain, long-term gain in Nigeria as the new government brings through economic reforms. Time will tell.”