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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Central banks want politicians to take charge – but what will they do?
US Economy

Central banks want politicians to take charge – but what will they do?

The US Federal Reserve has come to the end of the road in terms of what it can do to accelerate any recovery, says John Stepek. It's over to the polit…
17 Sep 2020