Shares of Manchester-based consumer products company PZ Cussons rose about 3% on Monday after it issued a trading update for the year ended May 31, 2022, saying it anticipates reporting revenue of £590 million.
“Trading in the fourth quarter has continued to be in line with expectations,” said Cussons.
“As such, we anticipate reporting group revenue for the year of approximately £590 million, with full year like for like (LFL) revenue growth of 3% and Q4 LFL growth of 7%.
“Growth continues to be driven primarily by improvements in price/mix, with limited impact on volumes.
“Our expectations for FY22 Adjusted Profit Before Tax are unchanged.
“We continue to see good revenue momentum on our Must Win Brands, which grew 4% in Q4.
“This sequential improvement reflects the ongoing benefit of marketing and executional focus, a normalising of the supply challenges for US Beauty, and a significantly lower rate of decline in Carex, as the demand for the Hand Hygiene category in the UK normalises following the COVID pandemic.
“Childs Farm, which was acquired in March, has performed in line with expectations and our plans to develop the brand are progressing well.”
Cussons employs over 3,000 people in Europe, North America, Asia-Pacific and Africa. Its brands include Carex, Imperial Leather, Original Source, Cussons Baby, Sanctuary Spa, St.Tropez, Morning Fresh and Premier.
Cussons CEO Jonathan Myers said: “As we close our first full financial year under our new strategy, ‘Building brands for life. Today and for future generations’, I am pleased with the significant progress made in returning the business to sustainable, profitable revenue growth.
“With a new team in place, we have re-focused on the core job of building brands and have started to unlock value through dramatically reducing complexity in our business.
“The trading environment continues to be challenging, with high input cost inflation and pressures on household budgets.
“We have plans in place to mitigate the impact of this, as we continue to deliver great value for consumers, whilst also investing behind more premium innovations.
“The recent introduction of our new portfolio brand, Cussons Creations, for the value-conscious consumer, alongside the re-launches of Sanctuary Spa and Imperial Leather, are good examples of such initiatives.
“They have been well received by customers and have allowed us to secure significant distribution gains.
“We have great brands and great people and, whilst there is more to be done to deliver against our strategy, we remain excited by the long-term opportunities ahead of us.”