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PZ Cussons has seemingly steadied the ship after its revenue tumbled last year off the back of Nigerian currency volatility.
Ahead of its annual general meeting later today, PZ Cussons said it expects to report approximately 5% like-for-like revenue growth for H1 FY25, in line with previous guidance.
Its last full year results in September saw revenues fall 20% to £528m equating to a pre-tax loss of £96m, largely due to a devaluation of Nigeria’s currency. PZ Cussons consequently lowered its operating profit expectations to £47m-£53m for FY25.
The FTSE250 company’s share price was stable in early trading and remains down almost 50% since the start of the year.
Its performance in the first six months of the new financial year reflects a continuation of strong growth in the UK, and pricing shifts in Africa led by FX-driven inflation, it said.
The Imperial Leather and Carex owner saw Asia-Pacific sales decline slightly, with continued improvement in Indonesia offset by a decline in Australia and New Zealand.
Gross debt is expected to be less than £160m at the end of November 2024, compared to £167m at the end of May.
The business said it is also taking action to reduce the impact of currency volatility in relation to intercompany loans to Nigeria.
The business reiterated its comments from September that the sale of self-tanning brand St Tropez and the ”partial or full sale” of its African business are both “progressing”. These were first announced in April this year.
Under CEO Jonathan Myers, the business has been on a turnaround path for several years but it is proving stubbornly difficult to correct.
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French group Tereos, one of the world’s largest sugar makers, has reported an 18% drop in first-half profits due a fall in sugar and sweeteners prices.
It warned of further declines in the second half of its financial year.
The group’s sales dropped 11% to €3.2bn while net profit fell to €196m in the six months to 30 September.
“The results were impacted by the drop in sales prices on the European markets, particularly in the starch and sweeteners segments, compared to the same period in 23/24,” it said on Wednesday.
Tereos said sugar prices in Europe slid from around €700 per ton to around €450 from July to October, pressured by large imports mainly from Ukraine, and a sharp increase in sugar beet production in Europe.
The situation could change next year with several European producers pointing to a potential decrease in the sugar beet area, it said.
The impact of large fires in Brazil that hit 6% of Tereos’ sugar cane area in August had a limited impact as some of the burnt cane has been harvested, it said.
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