REG - PZ CUSSONS PLC - Trading Update <Origin Href="QuoteRef">PZC.L</Origin>

PZ CussonsAnnouncement

06/09/2014 02:14

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RNS Number : 4014J
PZ CUSSONS PLC
12 June 2014 
 
12 June 2014 
 
PZ Cussons Plc 
 
(the "Group") 
 
Trading Update 
 
PZ Cussons Plc, a leading consumer products group, today issues the following
trading update for the year ended 31 May 2014. 
 
Overview of financial performance and position 
 
The board is pleased to announce that the performance of the Group for the
year ended 31 May 2014 has been in line with management expectations with
sterling profits* for the year expected to be approximately 6% higher than the
previous year. 
 
This result has been achieved despite a significant exchange impact of circa
£12m from the translation and transactional effect of weakening currencies.
Excluding this impact, profits* would have been 17% higher than the previous
year. 
 
The financial position of the Group remains strong with good cash generation
and only a small net debt position at the year end. 
 
Trading Update 
 
Europe 
 
In the UK washing and bathing division, Imperial Leather, Carex and Original
Source have performed well driven by a significant renovation and innovation
programme. The entire Imperial Leather range is being relaunched over the
coming months with exciting new products, imagery and fragrances. Product
portfolios have been optimised both for the big four supermarkets as well as
further increasing distribution in other channels. The Cussons Mum & Me range
is growing well together with new products under the Little Explorers
sub-brand. 
 
In the beauty division, consumer demand for St Tropez has been boosted by Kate
Moss as brand ambassador. The Sanctuary, Charles Worthington and Fudge brands
have performed well in the UK and have also now secured new overseas
distribution. 
 
In Poland, following the sale of the homecare brands in February for £46.6m in
cash, focus is now on investing in and growing the personal care brands of
Luksja, Original Source and Carex. 
 
Performance in Greece has continued to show some improvement as the economy
begins to stabilise. 
 
Asia 
 
Whilst profitability in Australia has been affected by the weaker Australian
dollar, the core brands of Morning Fresh and Radiant have performed well.
Rafferty's Garden has seen a number of new product launches and the
international expansion will begin to be executed before the end of the
calendar year. 
 
Continued positive momentum in Indonesia has delivered another year of revenue
growth although a weaker rupiah has impacted profits. Growth has been achieved
across both the babycare and non-babycare portfolios as well as continued
progress being made with distribution in other South East Asian territories. 
 
Overall trading in the smaller territories of Thailand and the Middle East has
been broadly in line with expectations. 
 
Africa 
 
In Nigeria, unrest in the North of the country has continued with increased
levels of disruption over recent months. Economically, interest rates have
been maintained at a high level reducing levels of liquidity in the trade. The
naira has remained stable versus the US$, despite coming under pressure ahead
of a change in the central bank governor. 
 
In personal care and home care, whilst commodity products have had to trade in
an extremely competitive environment, growth has been achieved in the value
add portfolio driven by a significant brand renovation programme. Good growth
has been achieved in the electricals business as well as in Nutricima, the
nutritional beverage JV with Glanbia. 
 
The palm oil joint venture with Wilmar has performed very well with the
refinery already operating towards capacity and ahead of expectations. Good
growth has been achieved in the consumer brands of Mamador and Devon Kings
with the balance of output sold business to business. 
 
Profitability in Ghana continues to be impacted by further weakening in the
cedi. Kenya has performed well and in line with expectations. 
 
Outlook 
 
Whilst trading conditions in most markets remain challenging, the Group
remains focussed on a dynamic and fast brand renovation and innovation
programme, an ongoing cost reduction programme and successful delivery of new
areas of growth such as Rafferty's Garden and the Wilmar joint venture. 
 
These initiatives will help to offset the continuing macro challenges and the
reduction in profits from Poland as a result of the homecare sale. 
 
The Group's balance sheet remains strong and well placed to pursue new areas
of growth. 
 
Preliminary results 
 
Preliminary results for the year ended 31 May 2014 will be announced on
Tuesday 29 July 2014. 
 
An analysts' presentation will be given at 9:30am on that day. This will be
held at the new offices of Instinctif Partners, 65 Gresham Street, London,
EC2V 7NQ. Dial in details will be available immediately following the
Preliminary results announcement. 
 
*profit before tax and exceptional items 
 
-     ENDS   - 
 
For further information contact: 
 
PZ Cussons Plc                                                                
        Tel: 0161 435 1027 
 
Brandon Leigh - Chief Financial Officer 
 
Instinctif                                                                    
               Tel: 020 7457 2020 
 
Toby Bates / Tim Linacre 
 
This information is provided by RNS
The company news service from the London Stock Exchange