Soap maker PZ Cussons (LON:PZC) issued a profit warning on Thursday, causing shares to plunge 25 percent in early trading.
The company, who manufacture brands including Imperial Leather and St Tropez, said trading had been weaker than expected in the last half of the year, warning that profits for the full year to May would be between £80 million and £85 million instead of the £103.5 million forecast a year ago.
The group attributed the problems to weak demand in the UK persona hygiene sector, as well as difficulties surrounding its milk business in Nigeria.
“The Nigerian consumer’s discretionary income remains under pressure with subdued buying levels. As a result the usual peak season uplift has not occurred to the expected level,” the company said.
The company outlined several initiatives designed to bring performance back in line, saying “We believe that the initiatives outlined above will strengthen the group’s brand portfolio to better withstand the subdued levels of consumer confidence and higher levels of competitive intensity which are being faced in most of the markets in which it operates.”
Shares in PZ Cussons have recovered from lows directly after market open, currently trading down 14.34 percent at 237.10 (0856GMT).