Pz Cussons Share Discussion Threads

[waldron] 04/3/2024 09:37

One can only surmise from here, the only way is up but of course getting ex divi soon will hinder an uptrend

[philanderer] 22/2/2024 16:01

The International Monetary Fund (IMF) has warned that the exchange rate of the Naira may further depreciate by about 35 percent this year, adding that this could lead to inflation rate peaking at 44 per cent before the monetary policy tightening could bring the situation under control.

[toffeeman] 21/2/2024 16:17

$10bn will do sweet FA

[philanderer] 21/2/2024 16:16

The Nigerian Federal Government is planning to raise $10bn to improve liquidity in the foreign exchange market. On Tuesday, the naira fell to an all-time low of 1,850 per dollar at the parallel market.

[darrin1471] 16/2/2024 18:34

Bloomberg reporting 2 hours ago:
"Naira Resumes Decline in Parallel Market After Days of Stability.
Spread with parallel rate widens to 10% from 2% in week.
Central bank’s forex measures not enough to curb naira rout."

Behind paywall.

[cfro] 16/2/2024 13:36

You can be bullish on Nigeria in the same way you can be bullish on China and Asia but of course they don't come without risk..

With Nigeria it depends. It depends on the populations ability, propensity and willingness to pay-up when their currency is going down hill. So far there has been 12 price rises on products and the management say it hasn't affected volume but a close eye is being kept on this of course..

Hence, so far at least, it appears like the people of Nigeria are still going about their business and paying for everyday products the best way they can.

If of course Naira disappears and the country collapses in a pile then there would be greater problems.

[gateside] 16/2/2024 12:21

I'm not necessarily bullish, but was pointing out from looking at the last set of results, that PZC have no intention of exiting Nigeria.

[justiceforthemany] 16/2/2024 11:55

I see a few of you are bullish on growth in Nigeria. What good is that when the currency has undergone 200% devaluation in 12 months? Mistake IMO.

[cfro] 16/2/2024 09:38

Just another point: on the sourcing of US Dollars in Nigeria:

Lots of global companies are apparently having difficulties with this which is one major reason why they are pulling out..

Management stated recently they were not having too much trouble and in fact different avenues for sourcing US Dollars had opened up in recent weeks.

[gateside] 16/2/2024 09:27

Slide 17 of the recent presentation, says for the future they plan on increasing this to 200000 stores.They clearly see Nigeria as an opportunity for the future.

[cfro] 16/2/2024 09:15

Just to be clear the option to sell out of Nigeria is no option at all. They see Nigeria as one of the biggest markets in the world both now and way into the future. They are staying firmly put..

With major global companies pulling out of Nigeria this was also discussed by management recently. They see this as a big opportunity for them to gain market share. They cite their several decades of operational experience and the fact that they deal directly, on the ground, to retailers which no other major company does as reasons why they have a competitive edge in Nigeria..

To prove the point they recently increased the number of retailers supplying products from 80,000 to 120,000..

[dope007] 15/2/2024 20:23

Enter China and Russia........

[philanderer] 15/2/2024 19:39

"Major global corporations exit Nigeria amidst Dollar scarcity and economic challenges"


Several major global corporations, including Procter & Gamble Co. (P&G), GSK Plc, Bayer AG, and Sanofi SA, have recently announced their exit from Nigeria, Africa’s most populous nation and second-largest economy.

The exits are attributed to challenges in accessing dollars for repatriating earnings, compounded by currency devaluations, a lack of reliable electricity supply, and congestion at ports.

According to Bloomberg, the exodus reflects broader economic issues, including policy missteps, corruption, and an over-reliance on oil.

[essentialinvestor] 15/2/2024 19:00

2) - an assumption they want to take the business private, may not be the case.

[justiceforthemany] 15/2/2024 18:20

Board has two options
1. Sell out of Nigeria and focus on the rest of the world, which is doing fine.
The Naira is in freefall and can not be trusted.
2. Accept a bid/founding family takes PZ back private.

[philanderer] 12/2/2024 17:31

Still no big commitment from directors.

Small non-exec buy from friday ... 8,360 @ 98.1p

[bedford1976] 10/2/2024 15:50

Body Shop are calling in the liquidators according to today's newspapers.

I wonder how much the brand is worth? But with 250 stores possibly closing that's one big competitor out of the equation. Sanctuary Spa could prosper.

[philanderer] 09/2/2024 14:32

spooky , PZC is my lowest holding by value and less than 0.5% of my portfolio now. The maximum it has ever been is around 1% so it's just a punt here really.

[justiceforthemany] 09/2/2024 12:15

Depends what your time frame is Spooky. As I keep saying the Nigerian depreciation is wholly to blame for what's going on here. If that stabilises then the share price will recover, perhaps within a year or two. Year on year comparisons will get better also but it has to settle first. The Naira depreciated by 40-50% vs USD in January again. WTF are the government there doing?

[spooky] 09/2/2024 11:48

philanderer - I think i recall you doing this with another stock. Holding it all the way down and then selling at the first hint of a bounce. It may be worth exploring the idea of a stop loss IMO.

[farrugia] 09/2/2024 11:38

the UK is trading like we are in a depression..

[justiceforthemany] 09/2/2024 11:21

2/3rds of the business is doing fine.
The Nigerian third has simply been battered by currency devaluation. That needs to stablise/strengthen and fast.

[philanderer] 09/2/2024 10:51

This crock of sh1te continues to fall, bottom not found and 750k traded . I intend to add to my holding to average down but not for some time yet.

I still think this will be taken private with a premium but not until the shareprice is much lower.

Luck to holders.

[farrugia] 09/2/2024 10:47

Childs Farm was also a good acquisition - my wife used to use their products for our baby.

[wunderbar] 09/2/2024 10:33

This morning PZC officially became a penny stock trading at just 99p, a low not seen since c.2003. I've had my eye on this stock for the past 5 years, waiting patiently for an entry point offering "value for money". Now I consider it a bargain and picked some up under £1. In time I think investors buying at this price point will be handsomely rewarded. Having already fallen 33% since start of 2024, and 50% over 12 months I think a lot of bad news is now baked into the price, but that's not to say we won't see continued volatility in the short term. I'll be happy to add on any further significant weakness.

Understandably, investors weren't happy with the update which triggered a 16% fall. In essence it was a double whammy slap in the face, a profit warning with the added pain of interim dividend being slashed by 44% to just 1.5p, but the way I see it, it's a case of short term pain for long term gain. Once the Nigerian currency stabilises then I believe confidence will return resulting in higher share price. My overall objective is to double my money c.200p within a time frame of 2-4 years.

PZC has some great brands in its portfolio such as Imperial Leather, Carex and Original Source to name a few. This stock is just screaming out for someone to snap it up and realise it's true potential. Some might suggest Unilever but they already have plenty big brand names in these categories. I personally think Reckitt Benckiser [RKT] should take a very close look at this company, they have the know-how and financial muscle power to turbo charge these well established brands on a truly global scale. As far as I know they don't have a division specifically selling these type of products - this would be an absolute steal for them and give them a ready-made footing in the personal hygiene sector.

PZC currently has a market cap of just £419m. Reckitt could easily make an offer double that [c.200p per share / £850m valuation]. In 2017 they acquired Mead Johnson [baby formula business] for approx. £13bn. Less than three years later they wrote off £5bn from this acquisition, in other words grossly overpaid. My point being, given the huge amount of money wasted on Mead [which ultimately cost the ceo his job], acquiring PZC for upto £1bn is short change for Reckitt.

I see another poster has come out with an outlandish 40-50p fair price valuation, no doubt derived from figures plucked out of thin air given he offers no analytical explanation. This would equate to a market cap of £171-214m for a company churning a regular £50-60m profit. This in turn would give us a P/E ratio of 3 or 4 noting PZC has historically traded on a P/E of 15 or higher. So then, 40-50p? I say utter nonsense.

To sum up: I'd be amazed if the share price is still lanquishing near 100p in 2-4 years time. At such a lowly valuation I'm convinced this is ripe for a takeover, or at very least offers up an opportunity to make a significant return on investment.