Last checked at 22 Sep 2015 07:00
PZ Cussons Plc
(the "Group")
AGM Trading Statement
PZ Cussons Plc, a leading international consumer products group, today issues the following trading update which covers the period 1 June 2015 to 21 September 2015, in advance of its Annual General Meeting, to be held at 10:30 today.
Overview of financial performance and position
The board is pleased to announce that the performance of the Group during the period has been in line with expectations. The financial position of the Group remains strong with cash generation during the period also in line with expectations. We are pleased with the impact of our product launches and our innovative product pipeline which are helping the business make progress in challenging markets.
Trading Update
Europe
In the UK, performance in the washing and bathing division has been strongly driven by an exciting innovation pipeline and the launch of a brand new range of Carex bodywash products.
The beauty division has performed well across its key markets with St Tropez's new gradual tan in shower lotion performing particularly well. The Sanctuary brand has also performed well supported by a new #LetGO campaign.
Performance in the smaller markets of Poland and Greece has been in line with expectations.
Asia
In all Asian markets, a further weakening in exchange rates is increasing local costs, reducing consumer disposable income and reducing results on translation to sterling.
In Australia there has been a modest improvement in the homecare trading environment with good progress made across personal care, beauty and the food & nutrition brands Rafferty's Garden and five:am.
In Indonesia, revenue growth has continued to be strong despite the more challenging consumer environment as a result of slower GDP growth and a weaker exchange rate.
Performance in the smaller markets of Thailand and the Middle East has been in line with expectations.
Africa
In Nigeria, the exchange rate has remained stable against the dollar although low oil prices continue to contribute to an environment of tight liquidity with additional foreign exchange restrictions imposed for certain imported items. Despite this, good performances across personal care, home care and food & nutrition are offsetting the more difficult trading environment for discretionary bigger ticket electrical items.
The underlying performance in the smaller markets of Ghana and Kenya has been in line with expectations, however weaker exchange rates have impacted reported results.
Outlook
Ongoing challenges relate principally to weakening exchange rates, particularly in Australia, Indonesia and Nigeria where imported inflation is affecting margins as well as consumer disposable income. In Nigeria, the tightening in foreign currency rules is also restricting dollar availability for certain items.
The strength of the Group's new product pipeline and the success of recent product launches leave the Group well placed to counter these challenges.
The Group's balance sheet remains strong and well placed to pursue new opportunities as they arise.
A further trading update will be made on 10 December 2015.
Enquiries:
PZ Cussons Plc
Brandon Leigh Tel: 0161 435 1236
Instinctif
Tim Linacre / Guy Scarborough Tel: 020 7457 2020