PZ Cussons says trading mixed due to 'challenging' conditions

Cosmetics and home-products group PZ Cussons said it still expects a return to profitable growth this year despite 'challenging' trading conditions in most of its markets.

Cosmetics and home-products group PZ Cussons said it still expects a return to profitable growth this year despite 'challenging' trading conditions in most of its markets.

The company, famous for cosmetics and home-products brands, said in a trading update on Thursday that its performance in the third quarter has been in line with management expectations and cash generation remains strong.

The UK washing and bathing division, responsible for the core brands of Imperial Leather, Carex and Original Source, is said to have performed well despite "intense promotional activity in the trade" and a tough environment for consumers.

This challenging consumer environment in the UK has been made up for by growth in international markets, the group said, though trading in the smaller Greek olive oil and spreads business remains difficult due to the wider economic backdrop.

Elsewhere, trading conditions in Australia are still challenging though the division has moved firmly back into profitability. Trading across South-East Asia remains strong.

In Africa, group said that it will launch a new consumer food ingredients brand in Nigeria in June after finishing the construction of a palm oil refinery. However, unrest in northern Nigeria continues to affect sales of its other products.

"We continue to face challenging trading conditions in most of the markets we operate in with consumer disposable income remaining under pressure," PZ Cussons said in statement.

"Results are expected to be in line with management expectations delivering a return to profitable growth for the year."

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

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021