Pz Cussons Regulatory News (PZC)

24 Sep 2007 07:01

PZ CUSSONS PLC24 September 2007 26 September 2007 PZ Cussons Plc (the "Group") Interim Management Statement PZ Cussons Plc today issues the following interim management statement whichcovers the period 1st June 2007 to 23rd September 2007, in advance of its AnnualGeneral Meeting, to be held at 12 noon today. Overview of financial position and performance The Board is pleased to announce that the performance of the Group during theperiod has been in line with management expectations. The financial position ofthe Group remains strong with cash generation during the period also in linewith expectations. Regional Reviews An update of performance and major projects in the Group's main markets ofNigeria, Indonesia, Australia and the UK is set out below. Africa In the Group's main market Nigeria, we are pleased to report that, following theelections held earlier this year, both the political and economic climate remainpositive. On the political front, the first transition from one democraticallyelected government to another has gone smoothly, with a noticeable continuationof the positive reforms commenced by the previous administration. The economicposition remains strong, supported by the continued high oil price, furtherinward foreign investment and importantly a stable currency. The group continues to invest in its infrastructure and is pleased to announcethat it has now concluded the first part of a major two stage review of itsNigerian manufacturing facilities, resulting in the approval of an £18minvestment programme. This programme will relocate and modernise the productionfacilities for the health and beauty business and also provide additionallogistical and distribution facilities to meet the growing demands of thesuccessful electrical goods business, operated in conjunction with our Chinesepartner, Haier. The milk and nutrition joint venture with Glanbia continues to make steadyprogress and, whilst milk costs have continued to rise, selling price increaseshave been achieved in the quarter. Construction of the current factory extensioncontinues on schedule with the further capacity due to come on stream at the endof the calendar year. As previously announced, the scope and design of thesecond factory has now been finalised and construction will commence later thisyear with completion scheduled for early 2009. Asia As announced last year the market for branded detergent products in Australiabecame very competitive, as a result of the introduction of private label rangesby the trade. Whilst the competitive conditions in Australia continue, we havesuccessfully launched a number of new products in the period which have helpedto contribute to improved brand performance. Margin improvement initiatives thatare already underway will also contribute in the full financial year. In Indonesia, the extensions to the baby brand that were launched in the secondhalf of the last financial year are proving successful, and are furtherstrengthening the brand's number one position in the market. Europe Performance of the UK business continues to be strong across the portfolio ofthe Imperial Leather, Original Source, Carex, Charles Worthington and MorningFresh brands. The company's number one position in the Personal Wash category has been furtherextended through successful variant and range extensions in the first quarter. The Charles Worthington range continues to perform well following the roll-outof the brand to the nationwide trade last year. The range was renovated withexciting new graphics and supported by a nationwide media campaign which hasreceived a very positive consumer reaction. As previously announced, the Group is constructing a new, purpose built liquidsfactory to provide additional capacity to meet the long-term supply needs of theUK business. The factory will form part of a 'Personal Wash Centre ofExcellence' for the Group and will incorporate a new Research and DevelopmentCentre and a Fragrance Development Centre. Construction is on schedule withcompletion planned for mid 2008. Contracts for the sale of the current factorysite were exchanged in the period. Finally in the UK, the Group announced proposals to close its final salarypension arrangements with effect from 31st May 2008, both to protect itself fromrising costs but also as part of a more modern global remuneration structure. Summary The overall performance and position of the Group is in line with the board'sexpectations at the end of the period and will be further detailed in theinterim financial statements for the six months to 30th November 2007, to beannounced at the end of January 2008. - Ends - For further information contact: PZ Cussons Plc Tel: 0161 491 8000 Graham Calder Hogarth Partnership Limited Tel: 020 7357 9477 John Olsen / Sarah MacLeod / Sarah Richardson This information is provided by RNS The company news service from the London Stock Exchange