Revenue at PZ Cussons has dropped by 19.6% to £527.9m in the year to 31 May, after its Nigerian market was affected by the devaluation of the Nigerian Naira.

The British manufacturer of personal healthcare products and consumer goods reported that its profit before tax also dropped by 39.7% to £44.7m, while its operating profit also fell to £58.3m, a drop of 20.5%.

The firm, which owns brands such as Imperial Leather, Carex and Bailey’s of Bond Street, said the devaluation of the Nigerian Naira during the latest full financial year has had a "significant impact" on its financial results.

The value of the Naira versus Sterling was, on average, 57% lower compared to the 2023 financial year.

Chief executive officer at PZ Cussons, Jonathan Myers, said: "The period was marked by a 70% devaluation of the Nigerian Naira, which has had significant implications on our reported financials. We have worked hard to mitigate the impact of this on the group, while continuing to serve Nigerian consumers who are facing unprecedented inflation and economic difficulties."

Despite this, the firm said that like-for-like (LFL) sales increased by 4.4% year-on-year, driven by price/mix improvements of 6.8% and a 2.4% decline in volume.

This was also driven by growth in Nigeria, as it offset cost inflation with pricing. However, LFL revenue dropped by 2.6% when excluding Africa.

Myers added: "Over the last 12 months, we have made continued operational progress and delivered against the strategic priorities set out at the start of the year, against the backdrop of macro-economic challenges. At the same time, we have taken the important first steps to transform our business and maximise shareholder value, by refocusing our portfolio on where we can be most competitive.

"The favourable trends of the second half of FY24 have continued into the new financial year. We are progressing with our plans to sell St. Tropez and have received a number of expressions of interest for our African business, recognising the potential of our brands and people, which could lead to a partial or full sale."

Looking ahead, the firm said that its guidance has been provided to separate the impact of the Naira uncertainty on the group’s results and therefore expects to deliver an operating profit in the range of £47m-53m.

However, movements in the Naira are expected to be a key determinant of the group’s reported 2025 financial year results.

Investment director at AJ Bell, Russ Mould, concluded: "The scale of the impact of foreign exchange headwinds is illustrated by the fact the company eked out LFL revenue growth at constant currency compared with a headline 20% drop. Though notably this was driven by increased pricing as volumes declined.

"There were some signs of progress in the background, with the company reducing its debt pile, and it did see volume growth in the fourth quarter. However, partly due to accounting changes related to preparing the African unit for sale, the company faces even greater sensitivity to the Naira in the current financial year.

"Having been at the helm since 2020, Jonathan Myers will be under pressure to deliver meaningful change and soon, with the divestment of the St Tropez tanning brand in progress."

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