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(Alliance News) -Â PZ Cussons PLC on Wednesday reported a strong annual performance, but has seen momentum slow into its new financial year as hygiene habits start to normalise from heightened pandemic levels.
Shares in the personal and home care and beauty products firm were down 5.0% at 218.95 pence in London early Wednesday, the worst performer in the FTSE 250.
For the financial year ended May 31, revenue was GBP603.3 million, up 2.7% from GBP587.2 million the year prior. Pretax profit was GBP63.2 million, more than triple GBP18.3 million a year ago.
As well as revenue growth, the profit performance was helped by a 34% reduction in administrative costs to GBP76.6 million.
PZ Cussons raised its total dividend 5.0% to 6.09p from 5.80p.
It highlighted organic revenue growth of 7.1% in the year, with all geographic regions and the core categories of Hygiene, Baby and Beauty all performing strongly.
Revenue for its Must Win Brands - comprising brands Carex, St Tropez, Sanctuary Spa, Premier Cool, Joy, Cussons Baby, Morning Fresh and Original Source - grew 11% in the year.
However, in a separate trading update released on Wednesday covering the start of its new financial year, it said first quarter Must Win Brands revenue had declined 20% year-on-year.
This drop was driven entirely by the Hygiene category, it said, as it reported that excluding the Carex hand wash brand, Must Win Brands revenue was up 4% in the quarter ended August 28.
"As expected, unprecedented demand for our Hygiene brands at the beginning of the Covid-19 pandemic impacted year-on-year revenue comparisons in the first quarter of FY22," said PZ Cussons.
In total, first quarter revenue was down 9% year-on-year, again driven by Hygiene. The Baby and Beauty categories showed strong price/mix improvement, with Hygiene held back by "unusually low levels of promotional discounting" on Carex last year amid the first wave of the pandemic.
PZ Cussons also flagged inflationary pressures, but still backed full-year profit expectations.
"We continue to navigate the well-publicised inflationary pressures on commodities and freight. We have a co-ordinated effort underway to reduce product, manufacturing and logistics costs that the consumer does not value while also accelerating our Revenue Growth Management plans to drive price/mix," said Chief Executive Jonathan Myers.
"Despite the significant inflationary pressure on our cost base, assuming no further cost headwinds or global supply or other Covid-related disruption, we expect to deliver FY22 adjusted profit before tax within the current range of expectations."
By Lucy Heming;Â lucyheming@alliancenews.com
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