PZ Cussons profit hit by ‘challenging market conditions’
Consumer products giant PZ Cussons, which owns brands including Imperial Leather and Original Source, reported a dip in revenue and profit in its half-year results due to “challenging market conditions”.
The company said adjusted revenue from continuing operations fell 4.3 per cent to £293.3m in the six months to 30 November.
Adjusted operating profit from continuing operations fell 13 per cent to £30.3m due to losses in Nigeria and poor performance in the UK and Australia.
However, PZ Cussons said reported profit before tax jumped 34.5 per cent to £34.7m due to the sale of its Greek business.
The firm said trading in the second half of the year is expected to improve, as the UK business is strengthened by the launch of an environmentally friendly hand wash range.
Increased marketing investment in its US beauty business and Focus Brands in Africa is expected to boost revenue.
PZ Cussons chairman Caroline Silver said: “The group’s adjusted results for the first half of the year were impacted by challenging market conditions across our key geographies.
“We were pleased to see that the performance of our our Focus Brands was stable overall compared to prior year. Our investment remains targeted towards these Focus Brands and this will continue in the second half of the year.
“We have started to restructure our portfolio of activities, disposing of our business in Greece and agreeing the sale of our Polish brand.
“Further portfolio reshaping is underway and initiatives to improve our operating efficiency are being implemented at pace.”