Trading Update

RNS Number : 1190I

PZ CUSSONS PLC

15 June 2017

 

15 June 2017

PZ Cussons Plc

(the "Group")

TRADING UPDATE

PZ Cussons Plc, a leading international consumer products group, today issues the following trading update in respect of the year ended 31 May 2017.

Overview

The board is pleased to announce that the overall performance of the Group has been in line with expectations.

The Group's balance sheet remains strong with cash generation for the period also in line with expectations.

Europe

In the UK, performance in the washing and bathing division has been robust with renovation and innovation continuing to drive good performance across Imperial Leather, Carex and Original Source despite competitive market conditions. The Imperial Leather range has been completely relaunched during the year and successful product launches have taken place under the Carex and Original Source brands.

In the beauty division, Sanctuary, St Tropez, Charles Worthington and Fudge have all performed well. The relaunch of the Sanctuary brand has now been completed with a new product range and a more premium look and feel. The new sub-brand, Being by Sanctuary, is now available in store and online and is targeting younger consumers with a range of 46 products. New product launches under the St Tropez brand include a new-to-market self-tan face mask.

Performance in the smaller markets of Poland and Greece has been in line with expectations.

Asia

In Australia, new product launches, range extensions and margin improvement initiatives have continued to improve the profitability of the business despite ongoing challenging trading conditions and all brands are performing well.

In Indonesia, good growth has continued across the brand portfolio with Cussons Baby strengthening its market leading position. Successful product launches in the year include the relaunch of the Cussons Kids range together with a new range of Imperial Leather products.

Performance in the smaller markets of Thailand and the Middle East has been in line with expectations.

Africa

In Nigeria, whilst liquidity has improved during the second half, availability of US dollars at the interbank rate remains low resulting in the need to continue accessing the secondary market.

All business units across Personal Care, Home Care, Electricals and Food & Nutrition have continued to trade relatively well in an environment where the consumer is under significant inflationary pressure. The Group's diverse product range with product offerings at all price points has ensured that market shares are held or grown across the brand portfolio.

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

Outlook

The strength and agility of the Group's brand portfolio is underpinning solid performance in all regions and new product launches are performing well.

Tight control of costs together with further margin improvement initiatives are successfully countering ongoing raw material and exchange rate volatility.

The Group's balance sheet remains strong and well placed to pursue new opportunities as they arise.

Final Results

Final results for the year ended 31 May 2017 will be announced on Tuesday 25 July 2017.

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For further information contact:

PZ Cussons Plc Brandon Leigh - Chief Financial Officer	Tel: [phone]
Instinctif Tim Linacre / Guy Scarborough	Tel: [phone]

 

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