Earnings growth for PZ Cussons
SHOWER gel to self tanning group PZ Cussons has reported half-year earnings growth thanks to strong sales in the UK and Australia.
However, turnover at the Manchester firm was flat due to tough trading in Nigeria – which accounts for more than a third of group sales – and a mixed picture in Europe.
In the six months to the end of November there was a marginal, 0.2%, rise in sales to £418.8m. Pre-tax profits rose 3.3% to £40.6m.
After stripping out exceptional supply chain restructuring costs of £3.5m, the group made pre-tax profits of £44.1, up 9.7%.
Nigeria, which accounted for around £140m of sales, down from £146m, was hampered by social unrest in the north, flooding, and lower disposable incomes.
Chairman Richard Harvey (Chairman) said: “Our performance in the UK has been particularly robust, and the Australian business has been returned to profit.
He added: “Our balance sheet remains strong and we have the appetite to pursue further investment opportunities which fit our strategic aims.
“Whilst trading conditions in most markets are challenging we remain confident of a return to profitable growth for the full year, with the range of potential outcomes being largely dependent on trading in our largest market Nigeria during its peak season over the coming months.”
