PZ Cussons has reported a strong increase in full-year profits despite tough trading conditions in Europe and social unrest in Nigeria.
The Imperial Leather maker said profit before tax increased by 16.5% to £107.5m for the year ending 31 May. It also reported a 2.8% rise in sales to £883.2m.
PZ Cussons said its supply chain optimisation programme – which involved the closure of factories in Australia and Ghana – led to margin improvements. Lower raw material costs also boosted margins.
Sales growth in Europe accelerated during the year from 2% in the first half to 7% in the second half. In the UK, new product development including the new Cussons Mum & Me range of personal care products for mother and baby and the relaunch of Imperial Leather helped grow sales.
“Growth came from all regions of Europe, Asia and Africa and in particular from the key markets of UK, Indonesia and Nigeria. This has been achieved despite challenging external factors such as the difficult trading environment in Europe, high wage inflation in Indonesia and the continuing unrest in the north of Nigeria,” said PZ Cussons chairman Richard Harvey.
Since the year-end, PZ Cussons has acquired Australian baby food brand Rafferty’s Garden for £42.2m in cash. It has also exchanged contracts for the sale of its Polish home care brands for $46.6m.
“We think the shape of the group continues to improve both through M&A and the investment programmes to raise efficiencies,” said Panmure analyst Graham Jones.
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