Profits soar at PZ Cussons
PERSONAL care group PZ Cussons shrugged off the global downturn and said its strategy of ‘local brands for local markets’ had driven a bumper rise in profits.
The Stockport-based group said its broad geographical spread and portfolio of products, which include the Imperial Leather and Sanctuary brands in the UK to milk and white electrical goods in Nigeria, has boosted pre-tax profits by 16% to £88.8m in the year to May 31.
Turnover at the company, which recently opened its £26m ‘personal wash centre of excellence’ in Manchester, was up a massive 27% to £838.1m.
It was also good news for investors as the group announced a 12% increase in the total dividend for the year.
In the UK and Europe, PZ Cussons, which is celebrating 125 years in business, said it has maintained its number one position in the personal care market through “continued brand renovation” and operating profit for the region was £40.9m.
Imperial Leather was completely relaunched and a number of new products were introduced by the Original Source and Charles Worthington brands. Like-for-like sales, excluding the Sanctuary brand were up 7.5%.
The group added that Sanctuary, which was bought in January 2008, continued to perform strongly and contributed £7m to operating profits.
In its main African market of Nigeria, which has been less impacted by the global credit crunch, demand for personal and home care, electrical products and nutrition was strong. Operating profit in the region was £39.5m on revenue of £415m.
In Asia, there was strong performance in Australia and Indonesia and the region contributed £135m to group turnover and £1.2m in operating profit.
Chairman Anthony Green said 2009 has been another successful year for PZ Cussons with strong performance in all territories despite the challenging economic environment.
He said: “Our diverse geographical spread has ensured that the group’s successful track record of profitable growth continues, with our strategy of ‘local brands for local markets’ enabling us to tailor our product offering appropriately in each territory to suit the local economic conditions.
“Overall performance since the year end has been in line with management expectations. We face the year with cautious optimism and well placed to pursue further investment opportunities.”
PZ Cussons added that it expects to move into its new headquarters at Manchester Business Park, adjacent to Manchester Airport, in spring next year.
