PZ Cussons on target despite competition

CONSUMER products group PZ Cussons is continuing to hit management targets and is generating strong levels of cashflow.

In an interim management statement covering June 1 to September 12 the group said it was focusing on working capital levels and had lower overheads following the completion of some major projects last year.

The business, which makes brands such as Imperial Leather, Original Source and Charles Worthington hair care products, said the UK market remained competitive with high levels of promotional activity from rival maufacturers.

Elsewhere in Europe sales in Poland have been robust while the economic environment in Greece “remains difficult”.

For the latest PZ Cussons share price and company data click here

The performance across the group’s activities in Asia has been good, particularly in its largest markets, Australia and Indonesia.

Cussons said the outlook in Nigeria, its main African market, was good despite a liquidity crisis caused by banking controls and uncertainty ahead of January’s presidential elections.

“The overall performance and position of the group at the end of the period is in line with the board’s expectations,” said the business.
 
“Overall, we remain cautiously optimistic for the full year outturn despite the global economic picture remaining uncertain and difficult trading conditions in some markets.”

In July Cussons, which holds its annual general meeting today, said profits had increased by 21% to £101.8m on sales of £771.6m.