Cussons Q3 revenue up 8.5% to £146m

Shares of Manchester-based consumer products company PZ Cussons rose about 4% on Wednesday after it said its revenue for the three months to February 28 rose 8.5% on a like-for-like basis to £146.3 million — and that it expects to deliver adjusted profit before tax within the range of current expectations.

In a trading update for its third quarter, PZ Cussons said that since its interim results on February 10, it has seen a further escalation in input costs.

“However, with good near-term visibility on performance trends and mitigating actions in place, the impact on the current year’s results is likely to be limited,” said PZ Cussons.

“We therefore expect to deliver adjusted PBT (profit before tax) within the range of current expectations.”

PZ Cussons CEO Jonathan Myers said: “It is just over a year since we set out our new strategy, to return PZ Cussons to sustainable, profitable revenue growth.

“We are focusing on building our Must Win Brands, driving executional excellence, dramatically reducing complexity and transforming our functional capabilities.

“We are aligning our portfolio around the core categories of Hygiene, Baby and Beauty and our priority markets.

“Our strategy is working, with revenue momentum from our Must Win Brands improving, and up 12.6% compared to before the pandemic.

“We also have a stronger portfolio following the disposal of non-core assets and the recent acquisition of Childs Farm.

“The external environment is amongst the most challenging many of us have seen.

“Input costs have continued to escalate in recent weeks, and it is likely that household budgets will soon come under pressure.

“Our teams are working hard to address both of these dynamics.

“We are removing costs that the consumer does not value, and have plans in place to meet evolving consumer needs, including innovation to offer everyday great value as well as more premium-priced launches.

“While the coming months will continue to be challenging for us and the wider consumer goods sector, the strength of our brands and our strategic progress gives me confidence in the long term prospects for the business.

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.