Strong UK performance boosts PZ Cussons
Imperial Leather maker PZ Cussons said it was trading in line with hopes after a strong performance in its UK washing and bathing division during the late summer.
PZ Cussons
90.30p
16:40 19/04/24
Cussons said its UK division, which makes soap and shower gel, had traded well despite tough trading conditions driven by the relaunch of the entire Imperial Leather range during the period between June and late September.
The group's beauty division did well across its key markets of UK, US and Australia, with tanning product St Tropez continuing to get a boost from supermodel Kate Moss as brand ambassador. Performance in the smaller markets of Poland and Greece matched expectations.
In Indonesia, the group made good progress in expanding its babycare portfolio as well as building non-babycare brands such as Original Source.
Performance in Australia was good in home care, personal care, beauty and food and nutrition.
Disruption in northern Nigeria had continued to worsen, resulting in lower sales in that region.
Good growth has continued in the south of the country, in particular in the electrical goods business and in the two food and nutrition joint ventures. Cussons said it was monitoring the ebola outbreak carefully despite a relatively small impact in Nigeria.
"Whilst trading conditions in most markets remain challenging, the group remains focussed on a dynamic and fast brand renovation and innovation programme, an ongoing cost reduction programme and successful delivery of new areas of growth such as Rafferty's Garden, Five:AM and the PZ Wilmar joint venture," it said in a trading update.
"These initiatives will help to offset the continuing macro challenges, including foreign exchange and raw material volatility, and the reduction in profits from Poland as a result of last year's home care brands sale."