PZ Cussons posts profits in line with forecasts

Consumer products giant PZ Cussons posted on Tuesday a rise in profits in line with market expectations.

Consumer products giant PZ Cussons posted on Tuesday a rise in profits in line with market expectations.

The company, which owns Original Source shampoo, Morning Fresh washing up liquid and Imperial Leather soap, reported a 9.7% increase in profits before tax of £44.1m for the six months to November.

The results met forecasts by Panmure Gordon Research which last week said the company would be driven by strong recovery in Asia while affected by social unrest in Nigeria's north.

"Closely watched will be the commentary on Nigeria, and while we believe that violence in the north has continued, it appears that fuel subsidies have remained unchanged, avoiding the national strikes that crippled the country last January," Panmure said.

Revenues for the period were flat with a modest 0.02% climb to £414.8m with business boosted by European and Asian sales offset by tough trading conditions in Nigeria.

The group also returned to profitability in Australia after implementing business improvement measures.

Operating profit grew 13% to £45.3m, following strong performance in Australia and the UK. The nterim dividend was raised 5.4% to 2.35p per share reflecting confidence in the future.

"Our overall performance since the period end has been in line with expectations," Chairman Richard Harvey said.

"Whilst trading conditions in most markets are challenging we remain confident of a return to profitable growth for the full year, with the range of potential outcomes being largely dependent on trading in our largest market Nigeria during its peak season over the coming months."

The group's annual profits for 2011/12 more than halved after it was hit by exceptional charges worth £43.8m and difficult trading conditions in Nigeria and Australia.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021