Profits slump at Imperial Leather maker as demand for soap eases
Consumer goods group PZ Cussons has reported a 9% slide in revenues as demand for its hygiene products eased.
The Imperial Leather maker reported half year revenues of £283.7m, or by 2% on a like-for-like basis while adjusted pre-tax profits dropped 8.3% to £32m for the six months to 30 November 2021.
The Manchester-headquartered group said the decline in revenue was primarily driven by the easing of demand of its Carex brand which had seen sales soar during the peak of the pandemic in 2020.
The business, which is working towards a B-Corp certification this year, has since returned to ‘normalised’ trading.
The group also held its interim dividend at 2.67p per share which CEO Jonathan Myers said reflected the company’s confidence in its underlying business momentum.
But he also warned of challenges in the second half.
He said: “Commodity and freight costs show no sign of abating in the near term and we continue to anticipate cost pressures into the 2023 financial year.
“Our focus is on both protecting our margins but also continuing to invest in the business, to secure future growth and build the capabilities we need to deliver against our strategy.”
The company said that it expects adjusted profit before tax for the full year to come within market estimates.
