Cussons cleans up on profits

In a trading update today (9 December) Cussons said its overall performance in Europe had been strong, benefiting in particular from good trading momentum in the UK and strong export sales out of Poland. In Asia, strong performance from Australia, Indonesia and the Middle East resulted in profitability ahead of the same period last year. In Africa, overall profitability in Nigeria was ahead of the same period last year despite a weakening of the Nigerian naira versus the US dollar which adversely impacts results on translation to sterling. During the period there was a tightening of liquidity in the market following the strengthening of controls in the banking sector. This was positive in the context of the long term health of Nigeria's financial system although it has had some short term effect on sales volumes, particularly in the higher value electrical goods category, Cussons said. A £39 million investment in Nigeria's broader supply chain facilities had continued to progress and the installation of new soap and detergent manufacturing equipment was on schedule for completion by August 2010. Looking ahead, the company said the outlook for the full year remained positive and in line with expectations.