Profits tumble by 13% at consumer products giant
Consumer products firm PZ Cussons saw its operating profits tumble by 13% over the last six months.
The Manchester based firm published its interim results this morning.
The company said challenging market conditions across key geographies led to a decline in group revenue of 4.3%.
Adjusted operating profit of £30.3m were 13% lower as a result of losses in Nigeria and lower profits in the UK and Australia.
Adjusted profit before tax of £28m, a reduction of 13.1% reflected reduced operating profit.
Reported profit before tax grew to £34.7m or +34.5%, driven by largely by a disposal of a business in Greece and lower exceptional charges than in the previous period.
A strategy announced in July 2019 is delivering initial progress with two disposals announced, stable revenue in focus brands and initial action to reduce overhead costs.
The firm said its saw UK share growth in washing and bathing products despite the difficult trading environment.
There was a 4.7% decline in revenue, reflecting continuing consumer uncertainty, trading down to private label in hand wash and well-documented challenges in the UK high street.
A stronger second half profit before tax is expected subject to no further worsening of the economic and trading environments across key geographies.
Assuming various initiatives are successful, full year revenue and profit before tax from continuing operations is expected to be modestly below the previous year.
Chair Caroline Silver said: “The group’s adjusted results for the first half of the year were impacted by challenging market conditions across our key geographies.
“We were pleased to see that the performance of our focus brands was stable overall compared to prior year.
“Our investment remains targeted towards these focus brands and this will continue in the second half of the year.
“We have started to restructure our portfolio of activities, disposing of our business in Greece and agreeing the sale of our Polish brand. Further portfolio reshaping is underway and initiatives to improve our operating efficiency are being implemented at pace.
“On 12th December 2019 we announced that chief executive officer Alex Kanellis will retire on 31st January 2020 after 26 years with the Group. Plans to appoint his successor are well advanced”.
