Member Article

Manchester’s PZ Cussons report pretax profit of £46 million

Manchester’s manufacturer of personal healthcare products PZ Cussons report pretax profit of £43.7 million up 8.2% compared to the same period last year.

This is despite a loss of £34 million in revenue and £3.4 million in operating profit from prior year disposals.

Operating profits from its Africa division are lower due to challenging trading conditions and currency issues.

Chairman, Richard Harvey said: “These are good results in what have been difficult markets.

“The Group has delivered underlying revenue and profit growth in the period having adjusted for acquisitions and disposals and the negative exchange impact from translation.

“The acquisition of the Australian food brand five:am further enhances the Group’s Food and Nutrition portfolio and, together with the Rafferty’s Garden brand acquired last year, creates a broader portfolio for roll-out across Asia.

“It has been very pleasing to see the African Food and Nutrition joint ventures revenue grow from £97 million to £161 million with the PZ Wilmar brands Mamador and Devon King’s performing particularly well.

“Underlying performance since the period end has been in line with expectations although the Naira has continued to weaken.

“The macro environment in Nigeria for the remainder of the financial year, which includes the February presidential elections and potential further currency volatility, will be a key contributing factor to the overall result for the full year.

“Looking through the short-term challenges we remain confident about the medium and long term opportunities in Africa.

“We have built a profitable and growing Electricals division, are seeing excellent growth in Food and Nutrition, and have a leading position in Personal Care and Home Care, all of which are poised to benefit once stability is re-established and the economy grows.

“Our balance sheet is strong and we have the appetite to pursue further investment opportunities which fit our strategic aims.”

This was posted in Bdaily's Members' News section by Sophia Taha .