Cussons FY revenue slips to £593m, but Q1 up 6.7%

Manchester-based consumer products company PZ Cussons said it has made a good start to its current financial year, with like-for-like revenue growth of 6.7% to £162.7 million in the first quarter.

The trading update came as PZ Cussons revealed its full-year revenue to May 31, 2022, slipped 1.7% to £592.8 million and profit before tax fell 8.7% to £65.3 million.

However, full-year dividend will rise 5.1% to 6.40p.

“We have had a good start to FY23, with LFL revenue growth of 6.7% led primarily by continued price/mix improvements,” said Cussons.

“Performance continues to be driven by Africa and APAC, with particularly strong growth in Morning Fresh in Australia and Premier in Nigeria.

“In Europe and Americas, Sanctuary Spa and Original Source grew strongly, but this was more than offset by the decline in the hand hygiene category impacting Carex, while St. Tropez also declined as a result of very challenging comparatives.”

In the year to May 31, adjusted profit before tax of £66.6 million was ahead of consensus expectations, with pricing and productivity initiatives largely offsetting cost inflation of £40 million.

PZ Cussons CEO Jonathan Myers said: “PZ Cussons has delivered a resilient performance over the past year, against the backdrop of challenging conditions in our markets.

“We have achieved this through our strategy to invest in our brands, focusing on the core categories of Hygiene, Baby and Beauty, while significantly raising the bar on the way we operate.

“We are reporting a second year of strategic progress, with revenue and operating profit both higher than two years ago.

“We have made good progress in addressing the legacy issues in our business and are now moving from Turnaround to Transformation.

“While there is plenty more to do and the external environment remains challenging, we have made a good start to the current financial year and continue to see significant long term opportunities ahead as we build towards a higher growth, higher margin, simpler and more sustainable business.”  

About the Author

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.