PZ Cussons profits take a dip
CONSUMER products group PZ Cussons today unveiled a rise in revenue but has seen its profits more than halve.
The Manchester-based manufacturer of a range of soaps, shampoos, detergent and beauty products under brands such as Imperial Leather, Original Source. St Tropez and Sanctuary, said that profits were hit by a combination of the highest raw material prices it had experienced, poor trading in Austrialia and and social and economic unrest in Nigeria.
Pre-tax profits after exceptional items fell to £48.5m in the 12 months to May 31 compared to £108.1m for the previous year.
The group said that revenue rose 4.7% to £858.9m despite the challenging trading conditions.
Chairman Richard Harvey said the group’s balance sheet remains strong with only a small net debt position which puts it in a good position to pursue “further investment opportunities”.
He said he was confident PZ Cussons would return to profitable growth in the current financial year.
Despite the profits drop the company is maintaining its final dividend at 4.487p making a total dividend of 6.717p for the year, a 1.6% increase and the 39th successive year of dividend increases.
Mr Harvey said: “The group delivered revenue growth despite challenging trading conditions. Profits were lower with a robust performance in the UK, strong trading in the Beauty division and positive momentum in Indonesia, more than offset by specific market challenges in Nigeria and Australia, and the impact of the largest year-on-year increase in raw material costs we have experienced.
“Despite the external challenges, the group remains committed to driving profitable growth through brand renovation and innovation, and
through further cost reduction.
“During the year, underlying revenue growth continued across the business, particularly in the UK, in the Beauty division and in Indonesia. As we start the current financial year this momentum, together with our new Cussons Mum & Me and Fudge ranges, will help to ensure this growth continues.”
The Manchester-based manufacturer of a range of soaps, shampoos, detergent and beauty products under brands such as Imperial Leather, Original Source. St Tropez and Sanctuary, said that profits were hit by a combination of the highest raw material prices it had experienced, poor trading in Austrial and and social and economic unrest in Nigeria.
Pre-tax profits after exceptional items fell to £48.5m in the 12 months to May 31 compared to £108.1m for the previous year.
The group said that revenue rose 4.7% to £858.9m despite the challenging trading conditions.
Chairman Richard Harvey said the group’s balance sheet remains strong with only a small net debt position which puts it in a good position to pursue “further investment opportunities”.
He said he was confident PZ Cussons would return to profitable growth in the current financial year.
Despite the profits drop the company is maintaining its final dividend at 4.487p making a total dividend of 6.717p for the year, a 1.6% increase and the 39th successive year of dividend increases.
Mr Harvey said: “The group delivered revenue growth despite challenging trading conditions. Profits were lower with a robust performance in the UK, strong trading in the Beauty division and positive momentum in Indonesia, more than offset by specific market challenges in Nigeria and Australia, and the impact of the largest year-on-year increase in raw material costs we have experienced.
“Despite the external challenges, the group remains committed to driving profitable growth through brand renovation and innovation, and through further cost reduction.
“During the year, underlying revenue growth continued across the business, particularly in the UK, in the Beauty division and in Indonesia. As we start the current financial year this momentum, together with our new Cussons Mum & Me and Fudge ranges, will help to ensure this growth continues.”
