PZ Cussons on Wednesday published first-half results that showed broad-based growth across its core markets and prompted management to raise its full-year profit guidance. For the six months ended November 29, group like-for-like revenue climbed 9.5%, with expansion recorded in each of the companys four lead markets - the UK, Australia/New Zealand, Nigeria and Indonesia.
The company reported a significant increase in profitability. Adjusted operating profit rose 31.9% to £35.6 million, while adjusted earnings per share improved by 12.3% to 4.37p. PZ Cussons said it would keep its interim dividend unchanged at 1.50p per share.
Chief executive Jonathan Myers noted the results were underpinned by a "healthy balance of price and volume increases" and highlighted growth across the top ten brands. Management attributed the performance to targeted investment in innovation, brand-building activity and sustained commercial execution.
Reflecting the stronger first-half outcome, PZ Cussons raised its full-year adjusted operating profit guidance to a range of £53-57 million, up from the prior range of £50-55 million. The updated outlook represents managements response to the H1 momentum across product categories and markets.
The group has also been reshaping its portfolio and using sale proceeds to bolster the balance sheet. To date PZ Cussons has received £48.5 million from the disposal of its 50% stake in the PZ Wilmar joint venture, and the company said a further £3.4 million is expected to be received soon.
Performance at the market level varied in drivers but was uniformly positive. In the UK, growth was led by Sanctuary Spa, which benefited from strong Christmas gifting. Nigeria recorded double-digit volume gains with most brands increasing market share. Meanwhile the company said its cost savings programme remains on track to deliver between £5-10 million in the current fiscal year.
Overall, the half-year results show a combination of pricing, volume growth and portfolio actions supporting margin recovery and balance-sheet improvement. Managements upgraded guidance and maintained dividend reflect confidence in near-term execution while leaving room for the remaining elements of the year to play out.