PZ Cussons said trading in most of its markets was challenging, but that it was confident of a return to profitable growth in the current financial year.
In a trading update the Imperial Leather soap maker said performance for the first half of the year had been in line with management expectations.
Revenue was broadly flat, mainly as a result of difficult trading conditions in its key market Nigeria, which has been affected by social unrest as well as widespread flooding.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, the firm said profits had increased by around 10% compared to the year before.
This was driven in particular by an improvement in the profitability of its Australian business and a robust performance in the UK.
"The group's focus remains on new product development and further margin improvement," the statement said.
"Raw material cost trends are expected to be favourable this year and the benefits of the supply chain optimisation project are also beginning to be seen."
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
