PZ Cussons hails dividend growth record as profits leap

PZ Cussons, the Manchester-based international consumer goods manufacturer, has reported strong annual results and a 40th consecutive year of dividend growth.

The group, whose UK products span from Imperial Leather soaps to St Tropez self-tan liquid and Original Source shower gels, said profits before exceptionals rose 16.5% to £107.5m in the year to the end of May after strong trading in Indonesia, Nigeria and the domestic market.

Revenue increased 2.8% to £883.2m. Revenue from Africa, which accounts for about 40% of total sales, rose 11.6% despite ongoing social and political upheaval in Nigeria.

Headquartered next to Manchester Airport and with a manufacturing facility in Salford, PZ Cussons recently boosted its international product offering with a £42.2m swoop for Australian baby food range Rafferty’s Garden.

Chairman Richard Harvey praised the group’s “entrepreneurial ability” to bring new products to market speedily and said this had helped it overcome challenging trading in some markets.

“The group has delivered on its expectations and returned to profitable growth. Growth came from all regions of Europe, Asia and Africa and in particular from the key markets of UK, Indonesia and Nigeria.

“This has been achieved despite challenging external factors such as the difficult trading environment in Europe, high wage inflation in Indonesia and the continuing unrest in the north of Nigeria.”

He added: “Post year end, the acquisition of Australian baby food brand Rafferty’s Garden marks the group’s entry into the food and nutrition category in Asia Pacific, and adds another leading brand with exciting growth potential.

“Despite the challenging trading conditions in most markets, the group expects to deliver continued increases in profitability and cashflow driven by brand innovation and renovation, as well as further margin improvement projects. Overall performance since the year-end has been in line with expectations.”

The company announced a final dividend of 5.04p per share and a total of 7.39p, up 10%, marking the 40th anniversary of consecutive year-on-year increases.

Mr Harvey said such growth demonstrates the “sustainable nature of the group’s cash generation”.

PZ Cussons said one-off items of £12.7m had been accrued in the year, the majority of which related to the ongoing supply chain improvement programme.