PZ Cussons (PZC) is one of many UK companies to feel the pinch, as cost inflation outstrips wage growth. Management warned that these factors, in conjunction with broader economic uncertainty, have caused UK consumers to shop cautiously. Recently launched products in the washing and bathing division have been well received, but volumes have been highly sensitive to price point and discounting.
Encouragingly, the Nigerian Naira has started to stabilise against the US dollar. The currency’s plunge last year doubled the cost of living for Nigerians and production costs for PZ Cussons, forcing the consumer goods company to overhaul its product range. Still, credit availability in Nigeria has tightened and the environment for consumers remains challenging.
