PZ Cussons washes its face with 'robust' year in face of challenges

Washing and beauty products maker PZ Cussons said its overall performance for the year remained on target, with the UK "robust", profitability improving in Australia despite challenging conditions and Nigeria trading "relatively well" in the face of significant local inflation.

FTSE 250 group, which expressed confidence about the outlook thanks to its wide brand portfolio, new product launches and tight cost control that is countering ongoing raw material and exchange rate volatility, giving an update on the year to 31 May, said the "overall performance" of the group and "cash generation" were both in line with expectations.

The consensus forecast for profit before tax for the year is £101.7m, according to a Bloomberg poll.

UK robustness in washing and bathing was led by "renovation and innovation" across Imperial Leather, Carex and Original Source brands, while beauty product ranges under the Sanctuary, St Tropez, Charles Worthington and Fudge labels "all performed well".

In Australia, improved profitability was generated from product launches, range extensions and margin improvements, with all brands "performing well" in ongoing challenging market conditions.

In Indonesia growth was "good", again helped by new products, while performance in Thailand and the Middle East was in line with expectations.

Nigerian liquidity has improved through the second half but availability of US dollars remains low with PZC having to continue accessing the secondary market at elevated rates.

In spite of this and the significant inflation, all of personal care, home care, electricals and food & nutrition businesses continue to trade "relatively well", holding or growing markets share.