PZ Cussons Nigeria’s revenues have fallen 9.6% year on year in the first nine months of FY2019, promoting profits to go into heavy decline. The company faces systemic problems in driving demand for its core health and beauty products in what is a competitive, but growing health and beauty market.

In Nigeria, PZ Cussons manufactures a wide range of consumer products which includes personal care and electricals products, as well as dairy brands under the Nutricima business line. In the first nine months of FY2019, PZ Cussons has reported a loss after tax of N414.2m ($1.15m) as revenues fell 9.6% to N20bn ($55.6m). Over the same period, operating expenses rose 3.7% to N4.2bn ($11.68m). More worryingly for the company, FX issues that have dogged Nigerian manufacturers for the past five years have largely receded, and commodity input costs have fallen.

Parent company PZ Cussons Plc issued a profit warning in early December, noting that prices, volumes and margins in Nigeria remained under pressure. The company has said it will look at changing price points and pack sizes across its portfolio in a bid to reconnect with consumers. The bigger question is how to revitalise consumer demand for its health and beauty products, especially the flagship and underperforming Imperial Leather range.