Tanning shower gel helps Cussons through tough times
INNOVATION in new products including a shower gel that gradually gives users’ skin a bronzed tint like a sun tan, has helped international consumer products company PZ Cussons navigate some turbulent waters.
Announcing flat half-year results, the Manchester-based company said many of its biggest Africa and Asian markets had been beset by tough trading conditions and currency challenges, but its European businesses had performed well.
In the six months to the end of November revenues were 0.2% down at £285.9m, while profits after exceptionals came in at £40m, marginally ahead of the £39.7m made in the half year to November 2014. The group said excluding the impact of currency, revenue and operating profit were 9.6% and 3.5% respectively ahead of the comparative period.
The company, which is best known for its Imperial Leather, Original Source, Carex and St Tropez brands, held its dividend at 2.61p per share.
Chairman Richard Harvey said: “These are a steady set of results in what have been challenging markets with overall revenue and profitability broadly flat versus the comparative period. A strong performance in Europe has offset a more difficult trading environment in Nigeria and the impact of weaker currencies in both Asia and Africa.”
He said the group has a strong pipeline of new products as demonstrated by successful new launches such as the St Tropez in shower gradual tan lotion and a new range of Carex bodywash products.
“These demonstrate the importance of delivering innovation to the consumer to drive growth in challenging trading conditions, and have ensured that our market share positions are either held or grown in our core categories.
“It is particularly pleasing to note that our European businesses are performing strongly and are offsetting the challenges in emerging markets and the impact of currency weakness, and highlights the importance of geographic and category diversity that continues to serve the group well,” he added.
Looking ahead the company said its geographic and category diversity “continues to serve it well”. It also has a strong balance sheet, meaning it is well placed to pursue new opportunities as they arise.
