(Reuters) -British consumer goods company PZ Cussons trimmed its profit expectations for the fiscal year ended May 2025 on Wednesday, citing softer performance of its self-tanning brand St. Tropez in
PZ Cussons Lowers Profit Forecast, Exits Nigerian Joint Venture
(Reuters) -British consumer goods company PZ Cussons trimmed its profit expectations for the fiscal year ended May 2025 on Wednesday, citing softer performance of its self-tanning brand St. Tropez in the U.S.
The company, which makes Imperial Leather soaps and Carex hand wash, has also agreed to sell its 50% stake in PZ Wilmar, its Nigerian edible oils joint venture, to partner Wilmar International for $70 million as part of plans to divest its African operations.
KEY CONTEXT
The firm, has been grappling with rising debt and weaker shareholder returns, primarily due to currency devaluation in Nigeria, one of its core markets.
Consumer companies around the world are also tackling fresh challenges related to costs, supply chains, and shifting consumer spending patterns, driven by U.S. President Donald Trump's broad-based trade tariffs.
WHY IT'S IMPORTANT
PZ Cussons has been pursuing a sale of the St. Tropez brand as part of a strategic review aimed at reducing mounting debt.
St. Tropez, popular with celebrities like reality television star Kim Kardashian and American model Ashley Graham, sells in 28 countries, according to the company's website.
BY THE NUMBERS
The company now expects to report adjusted operating profit within the 52 million pounds-55 million pounds range ($69.99 million - $74.02 million) for fiscal year, down from its previous forecast in the range of 52 million pounds to 58 million pounds.
The Manchester-based firm expects to report like-for-like revenue growth of 8% for FY25, but forecasts a 4.3% fall in reported revenue to about 505 million pounds.
MARKET REACTION
Shares of the company rose as much as 2.5% in early trade.
"Overall, the announcement moves the company a step forward on the portfolio transformation intentions laid out in April 2024," JP Morgan analysts said in a note.
($1 = 0.7430 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Janane Venkatraman)
