PZ Cussons suffers result of reduced margins in Europe and Africa
Reduced margins in areas of Europe and Africa have impacted on the adjusted operating profits Manchester-based consumer products group PZ Cussons.
The profit was down 10.3% to £37.5m from £41.8m in the half year to November 30, although revenue was up 1.9% to £385.4m (HY 2016: £378.2m).
PZ said today profitability was expected to improve in the second half as a result of further new product launches and distribution expansion.
There were tough trading conditions in the UK washing and bathing division with further brand initiatives planned for second half to improve performance, the company said.
Chair Caroline Silver said: “In the first half of the financial year, the group has faced tough trading conditions in many of the markets in which it operates, and whilst revenue was 1.9% higher than the previous period, adjusted operating profit was 10.3% lower as a result of reduced margins in certain business units in Europe and Africa.
“Initiatives are underway to improve performance of these business units and, together with the positive momentum elsewhere in the group and in particular in Asia, provide a solid basis for improved performance in the second half of the year.”