Premium brands shine for PZ Cussons

SHOWER gel, soaps and self tanning group PZ Cussons said today that while raw material cost pressure was proving a challenge it sees good growth prospects in emerging markets and with its premium brands.

The Manchester company behind popular consumer brands such as Imperial Leather and Original Source said in a trading update for the year to the end of May, it had seen a mixed picture in its key markets.

In Europe market conditions are tough, but trading has picked up in Nigeria after government elections there. Asia has been the stand-out performer with Indonesia proving particularly strong.

It was not all bad news in the domestic market, with product sales in the newly-created Beauty division, which includes Charles Worthington, Sanctuary Spa and most recently St. Tropez, proving robust.

PZ Cussons said: “In the UK, whilst the promotional environment and weak consumer demand is resulting in challenging retail trading conditions, our focus on brand renovation and innovation has resulted in us maintaining or increasing market shares in our core categories.
“The more premium brands have continued to perform particularly well.”

WIth regard to raw material costs PZ Cussons said it was trying to pass them on to customers “where possible”.

It added: “Overall, whilst weak consumer demand in developed markets and high raw material costs remain challenging, the outlook for our more premium brands in the UK and for growth in emerging markets remains positive.”

The company will announce its full-year figures on July 26.