- PZ Cussons reported a £6.4m pre-tax profit in the six months ending November
- The Manchester-based firm’s UK business had its best result for three years
PZ Cussons shares were the FTSE 250 Index’s top riser on Tuesday morning after the consumer goods seller rebounded to a first-half profit.
The personal healthcare group reported a £6.4million statutory pre-tax profit in the six months ending November, compared to a £94.2million loss in the same period last year amid massive currency headwinds in Nigeria.
Boss Jonathan Myers credited ‘particularly successful Christmas sales for Sanctuary Spa gifting’, and , ‘solid’ growth in PZ Cussons’ priority markets of the UK, Indonesia and Australia and New Zealand.
The Imperial Leather owner’s shares jumped over 10 per cent to 87.8p in early trading.
Profitability was achieved despitethe group’s turnover falling by 10 per cent to £249.3million, mainly because of the Nigerian Naira depreciating by 55 per cent against sterling.
Revenue across Africa plummeted by a third to £60.6million even though inflationary price hikes drove a 28 per cent surge in like-for-like sales.
By contrast, the firm’s revenues dipped by just 1.1 per cent to £87.7million in the Asia-Pacific and expanded by 3.9 per cent across Europe and the Americas.
Surge: PZ Cussons owns the soap and body wash brand Imperial Leather
In the former region, PZ Cussons enjoyed bumper growth in Indonesia, although this was offset by softer trade in Australia and New Zealand, partly due to industrial action at a customer’s distribution centres.
Meanwhile, the company’s UK business enjoyed its best result for three years thanks to bumper festive orders for skincare label Sanctuary Spa, and increasing demand for tanning brand St. Tropez and shampoo maker Childs Farm.
PZ Cussons wants to divest St. Tropez, which it bought for £62.5million in 2010, and its African business in order to streamline operations, cut debts, and deliver greater value for shareholders.
‘We are progressing with our plans to transform our portfolio to unlock value and reduce complexity,’ said Myers.
He added that the Manchester-based group was set to hit its annual profit forecasts given that the ‘trends of the first half of the year have continued’ since then.
PZ Cussons has raised its full-year operating profits guidance to between £52million and £58million after counting about £5million in foreign exchange-related losses as an adjusting item.
Founded in Sierra Leone in 1884, PZ Cussons owns two dozen brands across the hygiene, beauty and baby categories.
Among its most famous products are handwash manufacturers Carex and Original Source, as well as dishwashing liquid Morning Fresh.
Russ Mould, investment director at AJ Bell, said: ‘PZ Cussons’ latest numbers may not have a clean bill of health, but there were enough positive areas to impress the market.
‘A beaten down share price also meant investors were of a mind to give the company the benefit of the doubt.’
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