UPDATE 1-PZ Cussons profit dips on weak consumer spending; longtime CEO to retire

Published 12/12/2019, 08:48
Updated 12/12/2019, 08:55
© Reuters.  UPDATE 1-PZ Cussons profit dips on weak consumer spending; longtime CEO to retire

(Adds details, company comment)

Dec 12 (Reuters) - British cosmetics and soap maker PZ

Cussons Plc PZC.L reported lower half-yearly profits on

Thursday due to weak consumer spending in its major markets, and

said its chief executive officer was retiring.

The maker of Imperial Leather soap and Carex handwash said

Alex Kanellis, a company veteran who has been at the helm for 13

years, will retire on Jan. 31.

The company is facing a host of challenges both at home as

well as in its African business that makes up more than a third

of revenue, as Britons cut back on spending and demand for

personal care brands dwindles in key African markets.

PZ also reported lower revenue for the first half, but

expressed optimism for the second half.

"A stronger second half is expected subject to no further

worsening of the economic and trading environments across our

key geographies," the company said in a statement.

Still, full-year revenue and adjusted profit before tax is

expected to be modestly below the prior year on a like-for-like

basis, the company said.

Non-Executive Chair Caroline Silver will become executive

chair following Kanellis's exit, the company said, adding that

it expected to find his successor in the first half of 2020.

Shares in PZ Cussons, which said it would provide an update

on cost-saving measures at a later date, looked set to open 5%

lower on the London Stock Exchange, according to premarket

indicators.

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