PZ Cussons returns to growth after seven years

PZ Cussons returns to growth after seven years

THE WHAT? PZ Cussons hailed a return to growth as it announced its results for the 2021 financial year, which ended in May as well as a trading update for the first quarter of fiscal 2022.

THE DETAILS The manufacturer of Carex said it had delivered a ‘solid’ financial performance, returning to top- and bottom-line growth for the first time in seven years, as well as moving Africa back into profitability.

For FY2021, organic revenue was up 7.1 percent yoy in constant currency to £603.3 million, with growth across all geographic regions and core categories. Adjusted operating profit hit £71 million, a rise of 7.6 percent yoy.

Q1 2022, meanwhile, was impacted by comparison with the same quarter a year ago, when hygiene brands experienced unprecedented demand but business performance improved through the three months, returning to growth in August.

THE WHY? Jonathan Myers, Chief Executive Officer, commented, “The medium-term outlook remains in line with our expectations and we have confidence that our brand and market portfolio will emerge strongly once we cycle through the unprecedented demand for hygiene products at the start of the pandemic.

“We continue to navigate the well-publicised inflationary pressures on commodities and freight. We have a co-ordinated effort underway to reduce product, manufacturing and logistics costs that the consumer does not value while also accelerating our Revenue Growth Management plans to drive price / mix. Combined with sustained and more effective marketing investment, stronger brand plans and new product innovation, these interventions mean that, assuming no further disruptions, we expect to return to growth for Q2 and to deliver low to mid single-digit revenue growth for the year, in line with our strategic financial framework we outlined at the Capital Markets Day in March. Despite the significant inflationary pressure on our cost base, assuming no further cost headwinds or global supply or other Covid-related disruption, we expect to deliver FY22 adjusted profit before tax within the current range of expectations.”

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