PZ Cussons sees a return to profit growth
PZ Cussons, the Manchester headquartered consumer products group, says it has returned to profitable growth but wll continue to drive margin improvements throughout the business.
The group, best known for its Imperial Leather, Carex, Original Source and St Tropez brands, said in a trading update for the year that revenue and profit growth has been achieved in all three regions of Europe, Asia and Africa.
The financial position of the group remains strong with good cash generation and only a small net debt position at the year end, it added.
In the UK washing and bathing division, it said Cussons Mum & Me, the new range of products for mother and baby, has seen sales rates continuing to build as new customers are attracted to the brand.
In the beauty division, growth has been achieved in existing markets through new product launches and expansion into new distribution channels, as well as entry into new overseas markets such as Poland, Germany and Canada, it said.
Last month the division announced the appointment of Kate Moss as the new face and body of St Tropez and today it said that sales rates have already responded positively following an extensive PR campaign both in the UK and overseas and the roll out of new in-store imagery.
In Asia, the Indonesia business delivered another year of double digit revenue growth although a weaker rupiah and high wage inflation limited the growth in profitability, it said.
In Africa, unrest in the North of Nigeria has continued with both domestic sales and exports being affected during the peak trading season, it said, adding that the trading environment in the rest of the country has been more robust.
The stock market statement said: “The focus remains on driving revenue growth through brand innovation and renovation, so that our brands continue to stand out successfully in the tough trading environments that exist in most of the markets that we operate in.
“At the same time, margin improvement initiatives will continue in all areas of the business. The benefit of these will enable further investment to be made in new product development and brand support whilst continuing to deliver a sustainable growth in profitability.”
