Manchester-based FTSE 250 consumer products company PZ Cussons said its adjusted revenue rose 18.8% to £336.9 million in the half year ended December 3, 2022, and adjusted pre-tax profit rose 7.8% to £34.5 million.
PZ Cussons employs nearly 3,000 people across its operations in Europe, North America, Asia-Pacific and Africa. Its brands include Imperial Leather, Carex, Childs Farm, Cussons Baby, Morning Fresh, Original Source, Premier, Sanctuary Spa and St.Tropez.
The company reported continued progress with its “Building brands for life” strategy, including a doubling of investment in its Must Win Brands (MWBs) compared to H1 of FY20, including recent marketing campaigns for Original Source, Sanctuary Spa and Imperial Leather’s first TV campaign in seven years.
However, Cussons shares fell about 7% as it warned in its full-year outlook that it remains mindful of “significant macro-economic uncertainty, including the continued depreciation of the Nigerian naira.”
The firm said: “As previously guided, we expect a stronger operating margin performance in the second half of the year driven by improved trends in our Europe and Americas business, more benign cost inflation and the full impact of price increases implemented part way through the first half.
“We remain mindful of significant macro-economic uncertainty, including the continued depreciation of the Nigerian naira, but expect to report FY23 adjusted profit before tax in line with current market estimates.”
PZ Cussons CEO Jonathan Myers said: “Despite the continued challenging macro environment, we have delivered another quarter of like for like revenue growth.
“Our first half performance has been in line with expectations and we are reiterating our full year outlook.
“This is thanks to work we have done to make PZ Cussons a more resilient business and our focus on building stronger brands.
“For example, in the UK, our new brand Cussons Creations is serving cost-conscious shoppers and the re-launched Sanctuary Spa is for consumers looking to treat themselves at home with an everyday indulgence.
“Overall, while there remains more to do in our transformation and near-term headwinds to navigate in some of our markets, we are confident about the opportunities ahead of us.
“We are working to build a higher growth, higher margin, simpler and more sustainable business.”