Key Takeaways:
PZ Cussons upgraded its full-year profit expectations after reporting about 6% like-for-like revenue growth across all four lead markets.
"We have delivered a strong performance across the group, with broad-based growth in each of our lead markets," Chief Executive Officer Jonathan Myers said.
The consumer goods group, which owns brands including Imperial Leather, Carex and Sanctuary Spa, expects reported revenue of about £540M for the year ended 31 May. The company previously guided adjusted operating profit toward the upper end of a £53M to £57M range in March, after reporting first-half revenue of £269.3M and like-for-like growth of 9.5%.
The upgrade extends a turnaround that has seen the company strengthen its balance sheet through the sale of its 50% stake in the PZ Wilmar joint venture and non-core assets, reducing net debt to £84.3M by late November. PZ Cussons will report full-year results on 6 August.
The Manchester-based company, founded in 1884, has benefited from a stabilizing Nigerian naira and a return to volume growth in its Africa business. In the first half, Africa revenue grew 28% on a like-for-like basis, while the Europe and Americas segment posted 1.7% growth led by Sanctuary Spa's record Christmas gifting period, during which revenue rose more than 30%.
The Asia Pacific business grew 5.2% on a like-for-like basis in the first half, with Indonesia rising 9.4% and Australia and New Zealand up 1.7%. Morning Fresh, Radiant and Rafferty's Garden each gained market share in Australia over the 12 months through November.
PZ Cussons has been reshaping its portfolio, exiting non-core businesses and selling surplus assets. The company received £48.5M from the sale of its PZ Wilmar stake and has identified or agreed sales of more than £70M in total non-core assets since beginning a strategic review of its Africa operations. The group now expects to end fiscal 2026 with net leverage of about 1.0x, excluding cash held in Nigeria.
The guidance raise signals management expects the momentum to continue through the year-end. Investors will watch the full-year results on 6 August for segment-level margins and the outlook for fiscal 2027, with the company targeting double-digit total shareholder returns through the cycle.
This article is for informational purposes only and does not constitute investment advice.
