PZ Cussons issued a one line trading update today that just said that its full year profit expectations remained in line with the previously issued guidance at the time of its interim results in January.
However, the market was relieved that there was no bad news in the update following the group’s profit warnings in December and at the start of this year.
In January, the maker of Imperial Leather soaps saw its share price tumble after it said that it expects adjusted pre-tax profits for the year to the end of May 2019 to come in at £70m, compared to £80.1m in the previous fiscal year.
The warning came after relatively good performances in Europe and Asia were offset by “extremely challenging” conditions for its business in Nigeria. It also highlighted that consumer demand in all its key markets was likely to remain subdued.
PZ Cussons stated at the time that its working on initiatives to “streamline our portfolio of activities and limit exposure to volatility in Nigeria”, with it promising to provide more details in due course.
NAM Implications:
- It’s called managing stock market expectations, folks…
- …always pays in the end…
- (…and buys a little time…)
