PZ Cussons flags-up higher profits
PZ Cussons, the North West manufacturer of Imperial Leather soap and Original Source shower gels, said its first half profits were ahead of last year with strong trading in many of its key markets.
In a trading update the company, which also owns the Charles Worthington and Sanctuary hair care and beauty brands, said its European business was performing well with “good trading momentum” in the UK, and strong export sales out of Poland.
In the Asia region profits are ahead of last year thanks to strong performance in Australia, Indonesia and the Middle East.
In Nigeria, which is one of PZ Cussons’ biggest markets, profits are also ahead of last year despite currency and trading issues there, caused by a tightening of liquidity in the market following the strengthening of controls in the banking sector
This had impacted sales of high value electrical items, but volumes have now begun to returned as the liquidity issue recedes.
Finance director Brandon Leigh told TheBusinessDesk: “We are pleased with progress in all our markets. The UK is doing well with new product launches for
Imperial Leather and Original Source. Our new research facility in Salford is up and running now too.
“The issue is Nigeria is quite short term, and we welcome the tightening of the banking controls there.”
The trading update said: “PZ Cussons is pleased to confirm that results for the first half of the financial year have been in line with management expectations, with profitability ahead of the same period last year.
“The financial position of the group remains strong with cash generation during the period also in line with expectations, and with the group remaining in a net funds position at the end of the period.
Looking ahead the company, which will move its headquarters from Stockport to a new purpose-built 40,000sq ft location by Manchester Airport in April, said: “Strong performance in Europe and Asia is expected to offset any continued impact in Nigeria of adverse exchange rates and the tightening of liquidity in the market.
“The outlook for the full year therefore remains positive and in line with expectations.”
Interim results for the half year to November 30 will be announced on January 26.
