Advertisement

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.

Advertisement - Article continues below

"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

Advertisement
Advertisement

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

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020