PZ Cussons revised downwards its previous full year pre-tax profit expectations, once more due to a tough trading environment in Nigeria, despite positive indicators.

After a warning to shareholders last March, PZ Cussons has once again lowered its pre-tax full year profit expectations. The company now expects its pre-tax profits not to rise much above £80 million ($105 million), a 6% decrease from previous expected results. Immediately following the announcement, PZ Cusson’s shares dropped by 5%, adding to the difficult year the company has faced in the stock exchange. When comparing to June 2017, the company’s shares have gone down by 37% from £3.52 to £2.22.

According to company representatives, the bad results and the downward revision are again attributed to the difficult trading environment in Nigeria. Africa is PZ Cusson’s biggest market, representing 38% of the company’s business and Nigeria a significant portion of the continent’s trading. The company stated that, although oil prices have gone up and there are positive signs coming from the country’s economic performance, namely regarding the availability of foreign currency and more stable exchange rates, the recovery from last year’s economic recession has not yet reached consumers. Disposable incomes are still under significant pressure, keeping sales down.

Last March, PZ Cussons had issued a shareholder warning that set pre-tax profit expectations up to £85 million ($112 million). At the time, the company said it was reevaluating its operational model in Nigeria in an effort to reduce overhead costs and to review supply chain costs and product prices. According to the latest update which will be shortly followed by the company’s full year results which are should be published in the next few months.