PZ Cussons' half-year profit flat amid tough market conditions

(ShareCast News) - PZ Cussons, the owner of Imperial Leather and Carex, said half-year profit was broadly flat amid "tough" market conditions, but remains positive on the outlook of the company.For the six months ended 30 November, the FTSE 250 company said that its performance was in line with expectations with profits broadly flat compared to the same period last year, while its balance sheet remains "strong".In the UK the washing and bathing division was "robust" with new product launches for Imperial Leather, Carex and Original Source brands, but a poor summer adversely affected sales of St Tropez in the.On the whole the performance across the beauty portfolio was good for the remainder of the period, with new product launches in the second half of the year.The smaller market in Poland and Greece performed in line with expectations.In Australia, trading conditions were "tough" across all categories, but market shares was maintained with new product launches.There was good growth in Indonesia with brand investment, including a relaunch of the Cussons Kids range and a new range of Imperial Leather products. Performance in the smaller markets of Thailand and the Middle East was in line with expectations.In Nigeria, following the introduction of the new flexible exchange rate in June which led to a 40% devaluation of the naira, liquidity was poor with the exchange rate weakening both the interbank and secondary markets. Market shares across personal care, home care, electricals and food and nutrition have either been held or grown in the period, although volumes in all categories are lower as a result of changes to relative pricing.Performance in Ghana and Kenya were in line with expectations.The company said the strength of its brand portfolio and pipeline continues to ensure that its market share remains strong despite "tough trading conditions"."Brand renovation and innovation will underpin the trading result in the second half in Europe and Asia, with various mitigating actions planned across the UK businesses to counter higher costs. In Nigeria, the brand portfolio is well positioned for peak season in the country with the group's heritage and experience serving it well through very challenging macro conditions."Shares in PZ Cussons were down 1.71% to 308.40 0900 GMT.