Sales strong at PZ Cussons

IMPERIAL Leather maker PZ Cussons appears to have shrugged off the downturn and said its army of loyal customers have boosted sales.

The Stockport-based personal care company said both sales and profits have improved in the first half in its major markets of the UK and Nigeria.

In the UK, PZ Cussons said new product launches have ensured continued good growth, despite a worsening economic environment and increasingly challenging trading conditions.

It said: “The Sanctuary, purchased in January 2008, also continues to perform well with a product range that represents excellent value in the current climate supported by brand innovation and a loyal consumer base.”

In Nigeria, trading across personal care, home care and electricals has remained strong, while its nutrition business is expected to move into profit in the second half.

PZ Cussons said Nigeria remains relatively less impacted from the effects of the global credit crunch, with the high oil price during the past year allowing the accumulation of significant foreign exchange reserves.

The group said that construction of its ‘personal wash centre of excellence’ production facility in Manchester is almost complete. While its research and development centre will be completed early in 2009.

It added that despite the volatility in global markets, the outlook for the full year remains positive. “The impact of rising raw material costs in the first half is expected to be mitigated by margin improvement initiatives together with lower raw material costs in the second half of the year.

“Currencies are also volatile with a benefit to the group from the strengthening of the dollar versus sterling and an on-cost from the depreciation of certain Asian and African currencies versus the dollar.

“Overall, we remain cautiously optimistic for the full year outturn despite the uncertain global economic picture.”

The group will announce its interim results on January 27.