REG - PZ CUSSONS PLC - Q3 Trading Update

PZ CussonsAnnouncement

13/04/2023 07:00

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RNS Number : 0400W  PZ CUSSONS PLC  13 April 2023

13 April 2023

 

Sixth consecutive quarter of revenue growth - strength and depth of portfolio
driving performance

 

PZ Cussons plc today issues a trading update for its third quarter, ended 4
March 2023.

 

Group Summary  1  (#_ftn1)

 

·    Q3 LFL revenue growth of 6.2%, in line with year-to-date performance

·    Europe & the Americas region back to strong revenue growth and
with significantly improved margin

·    Progress against strategy to grow Must Win Brands including:

-      Launching Morning Fresh into the adjacent auto-dishwash category
in Australia; and

-      Childs Farm performing well with the recent launch of SlumberTime
innovation

·    Expect FY23 adjusted profit before tax to be at least in line with
current market estimates  2  (#_ftn2)

 

 Revenue                    Q3            YTD
                            £m     LFL %  LFL %
 Europe & the Americas      49.3   9.9%   (1.2)%
 Asia Pacific               47.6   1.0%   5.3%
 Africa                     68.4   7.7%   12.6%
 Group  3  (#_ftn3)         166.0  6.2%   6.1%

 

Jonathan Myers, Chief Executive Officer, said:

 

"We have delivered another quarter of mid-single digit revenue growth, in line
with our longer-term ambition. This represents a sixth consecutive quarter of
growth, with the business underpinned by the strength and depth of our
portfolio and our ongoing strategy to invest behind our brands, build internal
capabilities and serve consumers better.

 

As anticipated, performance has strengthened in Europe & the Americas,
with a return to revenue growth and a marked improvement in profitability in
the quarter. As a result, we remain confident in delivering against FY23
expectations and that further strategic progress will be made in the balance
of FY23 and into FY24."

Performance commentary

Group Q3 like for like revenue growth of 6.2% was driven primarily by
price/mix improvements. Reported revenue growth was 13.5%, reflecting the full
period contribution of Childs Farm which was acquired in March 2022 as well as
favourable foreign exchange movements. Year to date, revenue has grown by 6.1%
on a LFL basis.

 

As anticipated, performance in Europe & the Americas improved
significantly in Q3. This was a result of our strategic focus on innovation
and marketing, with particularly strong performances from St. Tropez US and
the combined Imperial Leather and Cussons Creations portfolio. Carex revenue
declined in Q3 reflecting the reduction in the UK Hand Hygiene category more
broadly. Childs Farm is performing as expected and is on track for
double-digit revenue growth in FY23, on a pro-forma basis.

 

Asia Pacific performance has been driven by strong growth in Australia,
reflecting continued successful Revenue Growth Management activity and
sustained share gains across our major brands. We recently launched Morning
Fresh into the auto-dishwash category, leveraging its brand strength with a
50% share in washing-up liquid. In Indonesia, Cussons Baby revenue declined
slightly, in line with the overall category, reflecting increased pressure on
consumer spending in recent months as well as some retailer de-stocking.

 

Africa trading continues in line with our expectations, with all Must Win
Brands in good growth. Strong trading throughout December and January was
partly offset by disrupted demand in Nigeria in February due to bank note
changes and the elections. These disruptions have largely dissipated and we
are now seeing a return to more normal demand patterns.

 

Outlook

 

Although we remain alert to ongoing external volatility, we continue to expect
FY23 adjusted profit before tax to be at least in line with current market
expectations. This includes a 3-4% benefit, compared to FY22, due to the
translation of results of our overseas operations.

 

Reporting calendar

 

PZ Cussons will issue a brief update on trading following the end of the
financial year.

 

PZ Cussons will host a Childs Farm 'deep-dive' event for analysts and
institutional investors on 4 July. The event will be led by Sarah Pollard,
Chief Financial Officer, and will include presentations from Paul Yocum,
Managing Director of Business Development, and Andrew Geoghegan, Chief
Marketing Transformation Officer.

 

Conference call

 

PZ Cussons management will host a call for analysts and institutional
investors today at 08:00 UK time.

 

Dial in details are as follows:

+44 20 3936 2999/ +44 808 189 0158

Access Code: 395221

 

 

 

Contact details

 

Investors

Simon Whittington - IR and Corporate Development Director

+44 (0) 77 1137 2928

Media

Headland PZCussons@headlandconsultancy.com
(mailto:PZCussons@headlandconsultancy.com)

+44 (0) 20 3805 4822

Susanna Voyle, Stephen Malthouse, Charlie Twigg

Notes to Editors

Unless otherwise stated, all references to revenue growth are on a like for
like ('LFL') basis. See definitions provided in the interim results
announcement for further details.

 

About PZ Cussons

 

PZ Cussons is a FTSE250 listed consumer goods business, headquartered in
Manchester, UK. We employ nearly 3,000 people across our operations in Europe,
North America, Asia-Pacific and Africa. Since our founding in 1884, we have
been creating products to delight, care for and nourish consumers. Across our
core categories of Hygiene, Baby and Beauty, our trusted and well-loved brands
include Carex, Childs Farm, Cussons Baby, Imperial Leather, Morning Fresh,
Original Source, Premier, Sanctuary Spa and St. Tropez. Sustainability and the
wellbeing of our employees and communities everywhere are at the heart of our
business model and strategy, and captured by our purpose: For everyone, for
life, for good.

 

Cautionary note regarding forward-looking statements

 

This announcement contains certain forward-looking statements relating to
expected or anticipated results, performance or events. Such statements are
subject to normal risks associated with the uncertainties in our business,
supply chain and consumer demand along with risks associated with
macro-economic, political and social factors in the markets in which we
operate. Whilst we believe that the expectations reflected herein are
reasonable based on the information we have as at the date of this
announcement, actual outcomes may vary significantly owing to factors outside
the control of the Group, such as cost of materials or demand for our
products, or within our control such as our investment decisions, allocation
of resources or changes to our plans or strategy. The Group expressly
disclaims any obligation to revise forward-looking statements made in this or
other announcements to reflect changes in our expectations or circumstances.
No reliance may be placed on the forward- looking statements contained within
this announcement.

 

 

 1  (#_ftnref1) Unless otherwise stated all references to revenue growth are
on a like for like ('LFL') basis

 2  (#_ftnref2) Bloomberg consensus of £68.1 million as at 11 April 2023

 3  (#_ftnref3) Excludes 'Other' revenue of £0.7 million in Q3

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