Shares of Manchester consumer products company PZ Cussons plc rose about 11% on Wednesday after it published first-half results for the six months to November 29 showing a “strong performance, with broad-based growth” and it increased its FY26 operating profit expectations.
The maker of Carex and Imperial Leather soap said adjusted first-half revenue rose 8% to £269.3 million and adjusted profit before tax climbed 50.5% to £29.8 million.
On current trading and FY26 outlook, PZ Cussons said: “Trading to the end of January has been in line with our expectations, with continued strong LFL revenue growth.
“Given the strong financial performance to date, subject to FX movements in the final months of the financial year, the Group expects to deliver:
“Adjusted operating profit: £53-57 million (£50-55 million previously).
“Gross Cost savings: c.£5-10 million (unchanged), with the majority re-invested in marketing, brand-building and people;
“Net debt / EBITDA: expect to end FY26 at approximately 1.0x (adjusted to exclude cash held within Nigeria), reflecting cash proceeds of £20 to £25 million for the sale of non-operating surplus assets, of which £15.8 million have been received to date.”
PZ Cussons CEO Jonathan Myers said: “We have delivered a strong performance in the first half of the year across our four lead markets.
“This performance, with a healthy balance of price and volume increases, and growth in each of our largest ten brands, has been driven by targeted investment in innovation, brand-building and continued strong commercial execution.
“Combined with tight cost control, we delivered double-digit growth in adjusted operating profit and adjusted earnings per share allowing us to increase guidance for the full year.
“We have concluded our strategic review, which has resulted in a significantly strengthened balance sheet and a more focused and more resilient business.
“Against this backdrop, we are setting out plans in our Capital Markets Event to deliver sustainable shareholder value, building winning portfolios of locally-loved brands in four lead markets.
“With a balance between developed and emerging markets and building on competitive go-to-market capabilities and manufacturing scale, we are targeting double-digit total shareholder return through the cycle.”