Trading Update

RNS Number : 9276G

PZ CUSSONS PLC

13 June 2013

 



13 June 2013

PZ Cussons Plc

(the "Group")

Trading Update

PZ Cussons Plc, a leading consumer products group, today issues the following trading update for the year ended 31^st May 2013.

Overview of financial performance and position

The board is pleased to announce that the performance of the Group for the year ended 31^st May 2013 has been in line with management expectations delivering a return to profitable growth for the year. Revenue and profit growth has been achieved in all three regions of Europe, Asia and Africa.

The financial position of the Group remains strong with good cash generation and only a small net debt position at the year end.

Trading Update

Europe

In the UK washing and bathing division, an ongoing programme of new product development has ensured that the core brands of Imperial Leather, Carex and Original Source have continued to perform well despite intense promotional activity in the trade and a challenging consumer environment. Cussons Mum & Me, the new range of products for mother and baby, has seen sales rates continuing to build as new customers are attracted to the brand.

In the beauty division, growth has been achieved in existing markets through new product launches and expansion into new distribution channels, as well as entry into new overseas markets such as Poland, Germany and Canada. Last month the division announced the appointment of Kate Moss as the new face and body of St Tropez. Sales rates have already responded positively following an extensive PR campaign both in the UK and overseas and the roll out of new in-store imagery. Last month also saw the launch of a new range of products under the Sanctuary Active Reverse range with Darcey Bussell continuing as brand ambassador.

The Group's performance in Poland remains strong in both homecare and personal care. As announced in February, contracts have been exchanged for the sale of the homecare brands for £46.6 million in cash with merger control clearance anticipated within the next three months.

Despite the difficult external environment our small Greek business remains profitable, although at lower levels than the previous year.

Asia

The Australian business has now moved firmly back into profitability following the successful restructuring of the business last year. Both the homecare and personal care portfolios are performing well despite the tough trading environment.

The Indonesia business has delivered another year of double digit revenue growth although a weaker rupiah and high wage inflation have limited the growth in profitability. Revenue growth has been achieved in both the babycare and non babycare portfolios as well as through wider distribution into new markets such as the Philippines, Myanmar and Vietnam.

Overall trading in the smaller territories of Thailand and the Middle East has been in line with expectations.

Africa

In Nigeria, unrest in the North of the country has continued with both domestic sales and exports being affected during the peak trading season. Nevertheless, the trading environment in the rest of the country has been more robust with no further fuel duty related impact taking place, resulting in an overall increase in sales in the second half of the year.

The new palm oil refinery, which has recently been commissioned as part of the joint venture with Wilmar, continues to increase production levels on a monthly basis and is operating well. The oil is currently being sold in bulk format to commercial customers. Product sales of consumer packaged oil in tamper proof bottles and sachets will commence in July under a new consumer brand.

Performance in the smaller territories of Ghana and Kenya has been in line with expectations.

Outlook

Across the Group, the focus remains on driving revenue growth through brand innovation and renovation, so that our brands continue to stand out successfully in the tough trading environments that exist in most of the markets that we operate in.

At the same time, margin improvement initiatives will continue in all areas of the business. The benefit of these will enable further investment to be made in new product development and brand support whilst continuing to deliver a sustainable growth in profitability.

Preliminary results

Preliminary results for the year ended 31 May 2013 will be announced on Tuesday 23 July 2013.

An analyst presentation will be given at 9:30am on that day at the offices of Panmure Gordon, One New Change, London, EC4M 9AF.

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For further information contact:

PZ Cussons Plc                                                Tel: [phone]

Brandon Leigh - Chief Financial Officer

College Hill                                                     Tel: [phone]

Toby Bates                                                        Mob: [phone]

Tim Linacre                                                       Mob: [phone]

 

END

 

 

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