PZ Cussons shows strength in depth
PZ CUSSONS, the company behind popular household brands such as Imperial Leather, Carex and St Tropez, says it is continuing to trade well, particularly in the UK, amid tough trading conditions in many markets.
The internationally-focused group based next to Manchester Airport, said trading between January 22 to April 9 was in line with expectations.
Finance director Brandon Leigh told TheBusinessDesk.com: “It’s a positive picture. The UK business is doing well despite trading being tough, there has been a lot of innovation on our brands which have performed well.”
The Cussons Mum & Me range, has been refined to focus on the successful top selling products, he said, and has been complemented by products for toddlers and young children under the Little Explorers sub-brand, which has included the launch of Carex handwashes for kids with scents including cola bottles and strawberry.
In the beauty division, consumer demand for self tanning range St Tropez continues to grow boosted by Kate Moss as brand ambassador.
The Sanctuary, Charles Worthington and Fudge brands have also performed well in the UK, the company said, and new overseas distribution will begin before the end of the financial year.
In Poland, the sale of the homecare brands completed in the period with £46.6m received in cash. The focus now is on investing in and growing the personal care brands of Luksja, Original Source and Carex. Performance in Greece continues to show some improvement as the economy begins to stabilise.
In Asia, profitability in Australia has been affected by the weaker Australian dollar, the core brands of Morning Fresh and Radiant have performed well.
Natural children’s food range Rafferty’s Garden is being prepared for international expansion, which will begin before the end of the calendar year.
In Africa, where trade has been affected by both political and economic factors, Mr Leigh said the group was benefitting from a strong spread of products across a number of categories, which includes white goods and cooking oils.
The company said it would tak a £20m charge in the current financial year from an extension to its supply chain optimisation programme, The £20m charge comprises a cash cost of £5m, most of which will be incurred in this financial year, and an additional non-cash charge of around £15m relating to the write-down of various manufacturing assets.
It added: “The above charges will be more than offset by the net exceptional credit of circa £30m on the disposal of the Polish assets.”
