PZ Cussons' profit growth held back by FX

12th Jun 2014 07:13

- Sterling profits up 6% on last year's £107.5m- FX movements have £12m adverse impact- Company highlights "continuing macro challenges"Consumer products group PZ Cussons said that annual profits will be ahead of last year but adverse currency movements will have a big impact on growth.The company, well known for its cosmetic ranges such as Imperial Leather and Original Source as well as a range of home care and food products, also said that trading conditions "remain challenging" in most marketsPZ Cussons said the 12 months to May 31st were in line with expectations with pre-tax profits before exceptional items in pounds rising 6% on last year's £107.5m.However, growth would have been 17% if it weren't for a foreign exchange impact of around £12m from weakening currencies in many of its international markets.The company noted that profit growth was limited by a weaker Australian dollar, Indonesia rupiah and the Ghanaian cedi.Meanwhile in Nigeria, one of its larger markets, PZ Cussons said it experienced "increased levels of disruption" due to unrest in the north of the country, while elevated interest rates have reduced levels of liquidity in the trade.The company said it is focusing on a "dynamic and fast brand renovation and innovation programme" as well as an ongoing cost reduction plan.This will help to offset the "continuing macro challenges" and the reduction in profits in Poland due to the £46.6m sale of its homecare brands there in February.