PZ Cussons navigating choppy waters

PZ Cussons, the Manchester headquartered consumer products group, says that although markets continue to be tough, it will return to profitable growth this year.

The group, best known for its Imperial Leather, Carex, Original Source and St Tropez brands, said in a trading update, that performance since February had been in line with management expectations.

In the domestic market in its washing and bathing division, the core brands of Imperial Leather, Carex and Original Source performed well,  despite intense promotional activity and a challenging consumer environment.

Sales of Cussons Mum & Me, the new range of products for mother and baby, have been “very encouraging”, the company said.

The beauty division has performed well in the period with growth in international markets,  compensating for a tougher trading environment in the UK.

Sales of self tan brand St Tropez in the US have continued to grow and, during the period, it has been launched into further export markets including Poland and Germany.

PZ Cussons said its Polish business was strong and it expects to complete the sale of the homecare brands there soon, after regulatory clearance has been gained.

Trading in the group’s smaller Greek business remains difficult as a result of the wider economic backdrop, it said.

The Australian business is continuing to improve, though challenges remain in Nigeria – its largest market.

“We continue to face challenging trading conditions in most of the markets we operate in with consumer disposable income remaining under pressure.

“Against this backdrop, the group continues its focus on brand innovation and renovation in all markets as well as cost optimisation in all areas of the business. Results are expected to be in line with management expectations delivering a return to profitable growth for the year.”