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PZ Cussons feels the heat in Africa

The consumer goods company has been hurt by the economic downturn in Nigeria
PZ Cussons feels the heat in Africa

PZ Cussons (PZC), the owner of international consumer brands such as Imperial Leather soap and Rafferty's Garden baby food, has its roots in Africa. And, while it has built strong positions in Asia and Europe, Africa remains – just about – its largest market by sales, accounting for 36 per cent of the total. The core of its operations there is in Nigeria. But, as the unemployment rate in the country has risen from around 7 per cent at the start of 2015 to over 23 per cent last year, PZ Cussons has struggled.

IC TIP: Sell at 214p
Tip style
Sell
Risk rating
High
Timescale
Medium Term
Bull points

New product launches

Cost-cutting plans to be announced

Bear points

Trouble in Africa

Analyst downgrades

Falling sales

Uncertain recovery

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