REG - PZ CUSSONS PLC - Interim Results
11/02/2026 07:00
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RNS Number : 4983S PZ CUSSONS PLC 11 February 2026
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation. Upon the publication of this announcement via a
Regulatory Information Service, this inside information is now considered to
be in the public domain.
11 February 2026
RESULTS FOR THE SIX MONTHS ENDED 29 NOVEMBER 2025
Strong performance, with broad-based growth
Increased FY26 operating profit expectations
Jonathan Myers, Chief Executive Officer, said: "We have delivered a strong
performance in the first half of the year across our four lead markets. This
performance, with a healthy balance of price and volume increases, and growth
in each of our largest ten brands, has been driven by targeted investment in
innovation, brand-building and continued strong commercial execution. Combined
with tight cost control, we delivered double-digit growth in adjusted
operating profit and adjusted earnings per share allowing us to increase
guidance for the full year.
We have concluded our strategic review, which has resulted in a significantly
strengthened balance sheet and a more focused and more resilient business.
Against this backdrop, we are setting out plans in our Capital Markets Event
to deliver sustainable shareholder value, building winning portfolios of
locally-loved brands in four lead markets. With a balance between developed
and emerging markets and building on competitive go-to-market capabilities and
manufacturing scale, we are targeting double-digit total shareholder return
through the cycle."
£m Adjusted Statutory
unless otherwise stated
H1 FY26 H1 FY25 variance H1 FY26 H1 FY25 variance
Revenue 269.3 249.3 8.0% 269.3 249.3 8.0%
LFL revenue growth (LFL) 9.5% 7.1%
Operating profit 35.6 27.0 31.9% 40.1 13.4 199.3%
Operating margin 13.2% 10.8% 240bps 14.9% 5.4% 950bps
Profit before tax 29.8 19.8 50.5% 34.3 6.4 435.9%
Basic earnings per share 4.37p 3.89p 12.3% 1.40p 1.19p 17.6%
Dividend per share 1.50p 1.50p 0.0%
Operating profit (ex. Wilmar) 1 (#_ftn1) 35.6 22.3 59.6% 40.1 11.1 261.3%
Operating margin 13.2% 8.9% 430bps 14.9% 4.5% 1040bps
See pages 11-14 for the reconciliation between Alternative Performance
Measures and Statutory results.
Numbers are shown based on continuing operations. With the exception of LFL
revenue growth, % changes are shown at actual FX rates.
H1 FY26 refers to the 6 months ended 29 November 2025 and H1 FY25 refers to
the 6 months ended 30 November 2024.
Summary
Financial results
· Broad-based LFL revenue growth of 9.5% with growth in each of our
four lead markets (UK, ANZ, Nigeria and Indonesia):
o UK - growth led by Sanctuary Spa with successful Christmas gifting in a
continued competitive environment
o ANZ - a return to category growth, with continued strong market share
o Nigeria - annualising pricing increases with double-digit volume growth
with most brands gaining market share
o Indonesia - strong growth driven by innovation and commercial execution
· Excluding Africa, LFL revenue growth was 3.2% with volume growth of
0.7%.
· Reported revenue increased 8.0% reflecting the depreciation of the
Australian Dollar and Indonesian Rupiah versus Sterling.
· Excluding the contribution from the PZ Wilmar joint venture in the
comparative period, adjusted operating profit increased by £13.3 million.
This reflected a strengthening of the Nigerian Naira driving non-cash FX gains
on trading liabilities and planned phasing of marketing where investment will
be weighted towards H2.
· Adjusted profit before tax increased 50.5%, reflecting the increased
operating profit and lower interest costs.
· Adjusted EPS increased by 12.3%, with increased PBT partly offset by
an increase in the Group's effective tax rate due to geographic profit mix
with a normalised Nigeria tax rate and the impact of the PZ Wilmar disposal.
· Net debt declined by £27.7 million compared to 31 May 2025, driven
by free cash flow of £23.2 million and proceeds from portfolio transformation
activity.
Delivery against our strategy
· £48.5 million proceeds received to date in respect of the sale of
our 50% stake in the PZ Wilmar joint venture, with a further £3.4 million
expected over the coming weeks.
· Renewed strategy for St Tropez; successful transition to Emerson
partnership in US driving revenue growth but offset by a decline in revenue
outside of the US.
· Cost savings programme on track with c.£5-10 million expected in
FY26.
Dividend
The Board is declaring a dividend of 1.50p per share, in line with last year's
payment. The dividend will be paid on 9 April 2026 to shareholders on the
register at the close of business on 6 March 2026.
Capital allocation policy
As set out at today's Capital Markets Event, the Board has adopted the
following capital allocation policy. This defines the use of surplus cash
after re-investment in the business as follows:
1. Net debt / EBITDA to be in the range of 1.0-1.5x, excluding cash held
in Nigeria;
2. A progressive dividend;
3. Bolt-on M&A, prioritising UK and Australia, to be considered
alongside cash returns to shareholders.
Current trading and FY26 outlook
Trading to the end of January has been in line with our expectations, with
continued strong LFL revenue growth.
Given the strong financial performance to date, subject to FX movements in the
final months of the financial year, the Group expects to deliver:
· Adjusted operating profit: £53-57 million (£50-55 million
previously);
· Gross Cost savings: c.£5-10 million (unchanged), with the majority
re-invested in marketing, brand-building and people;
· Net debt / EBITDA: expect to end FY26 at approximately 1.0x (adjusted
to exclude cash held within Nigeria), reflecting cash proceeds of £20 to £25
million for the sale of non-operating surplus assets, of which £15.8 million
have been received to date.
For further information please contact:
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 and Charlie Twigg
Investor and Analyst conference call
PZ Cussons' management will host a virtual audiocast presentation for analysts
and institutional investors at 8.30am UK time to present the results and
provide the opportunity for Q&A. Details of the presentation are as
follows:
A webcast of the presentation is available at the link below and will also be
available via our corporate website: www.pzcussons.com
(http://www.pzcussons.com) .
Audience Webcast link:
https://www.netroadshow.com/events/login/LE9zwo49fLBr1uJFlpupMYKjREnzxjYprXz
(https://www.netroadshow.com/events/login/LE9zwo49fLBr1uJFlpupMYKjREnzxjYprXz)
Dial in: +44 20 3936 2999 / +44 808 189 0158
Access code: 158955
Capital Markets Event
The Group will today host a Capital Markets Event. The presentation is in
person and will commence at 14:00 (GMT). A recording will be published on the
Group's corporate website following the event. Institutional investors who
would like to attend the event should register their interest with
PZCussons@headlandconsultancy.com.
Notes to Editors
About PZ Cussons
PZ Cussons is a listed consumer goods business headquartered in Manchester,
UK. We employ just under 2,500 people, with operations in Europe, Africa,
Asia-Pacific and North America. 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
macroeconomic, 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 of the date of this
announcement, actual outcomes may vary significantly owing to factors outside
the control of the PZ Cussons 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 PZ Cussons
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.
Glossary
A glossary of relevant key terms and definitions can be found in the 2025
Annual report and accounts.
GROUP REVIEW
Introduction from our Chief Executive Officer
We have delivered a strong performance in the first half of the year across
our four lead markets. Like for like revenue growth of 9.5% is broad-based,
with a healthy balance between price and volume increases and with growth in
each of our largest ten brands. It is particularly encouraging to see
continued strong growth in Nigeria, which has delivered a return to volume
growth in H1 against a much more benign macro-economic backdrop and a stable
currency.
At the same time, we have continued to work hard to reduce our cost base and
expect to deliver approximately £5-10 million of gross savings in FY26. This
has allowed us to re-invest in brand-building activity, both expanding current
year marketing such as Original Source's 'Nature Hits Different' campaign,
increasing funding to strengthen the medium-term New Product Development
('NPD') pipeline as well as continuing to invest in people and capabilities.
During the period we made progress against our work to transform our
portfolio. In June 2025 we announced our decision to retain the St.Tropez
business and set a new strategic direction for the brand, partnering with The
Emerson Group in the US. With a new, focused team driving the business, we are
already seeing good early signs of improved performance in the US business
where revenue grew 12% in H1. Our focus remains on improving St.Tropez
performance elsewhere, however, where revenue declined over 30% in H1.
We also announced the sale of our 50% stake in PZ Wilmar, our non-core
Nigerian joint venture. The Group has now received £48.5 million proceeds
with a further £3.4 million associated with the sale of ancillary land assets
expected to be received over the coming weeks. As a result of this, since
embarking on the strategic review of Africa, we have identified or agreed the
sale of non-core or surplus assets totalling over £70 million, including the
sale of Wilmar, which has significantly strengthened our balance sheet. We see
significant opportunity to grow our business in Africa and, given PZ Cussons'
deep heritage there, and the strength of our brands and operational
capabilities, we are well-placed to win over the longer term.
Going forwards, we have plans to deliver sustainable shareholder value with
our portfolio of locally-loved brands in four lead markets. With a balance
between developed and emerging markets and building on competitive
go-to-market capabilities and manufacturing scale, we are targeting
double-digit total shareholder return through the cycle.
FINANCIAL REVIEW
Overview of Group financial performance
Our reported financial performance for the six months ended 29 November 2025
reflects the continued progress against our strategy. The Group saw strong
broad-based, like for like revenue of 9.5%, with growth across each of our
four lead markets of the UK, ANZ, Nigeria and Indonesia.
Adjusted profit before tax (PBT) increased by 50.5%, as a result of the
Operating Profit improvement and reduction in interest charge. Adjusted
earnings per share grew 12.3%, due to the uplift in PBT and in spite of an
increased tax charge. On a statutory basis, EPS was 1.40p (H1 FY25: 1.19p).
Net debt was reduced by £27.7 million, as compared to 31 May 2025. This
reflects free cash flow of £23.2 million, £15.8 million of proceeds from the
sale of surplus, non-operating assets and an initial £11.8 million associated
with the equity portion of the sale of our stake in the PZ Wilmar. Net debt/
EBITDA is now 1.1x on a last-12-months basis.
The Board is declaring a dividend of 1.50p per share, unchanged on last year's
payment. The dividend will be paid on 9 April 2026 to shareholders on the
register at the close of business on 6 March 2026.
Sale of 50% stake in PZ Wilmar
The Group announced in June 2025 the sale of its 50% stake in PZ Wilmar - its
edible oils joint venture, for total consideration of $70 million (£51
million) 2 (#_ftn2) . The consideration is split between equity and debt
associated with the joint venture as well as consideration for ancillary
assets, primarily plots of land. Reflecting the complex nature of the
transaction, change in ownership of these assets and receipt of the associated
consideration, has taken place in stages. To date, the Group has received
$63.4 million (£48.5 million) of which $15.4 million (£11.8 million) was
received in H1. Since the initial announcement, the Group has agreed with
Wilmar to exclude certain assets from the transaction perimeter, and expects
to receive a final $4.5 million (£3.4 million), associated with the sale of
ancillary land assets, over the coming weeks. Total proceeds are therefore
expected to be $67.9 million (£51.9 million) 3 (#_ftn3) .
Performance by geography
Europe and the Americas
£m unless otherwise stated H1 FY26 H1 FY25 Growth/ (decline)
Revenue 102.5 101.0 1.5%
LFL revenue growth (%) 1.7% 4.0% n/a
Adjusted operating profit 22.7 20.7 9.7%
Margin (%) 22.1% 20.5% 160bps
Operating profit 22.0 19.6 12.2%
Margin (%) 21.5% 19.4% 210bps
Revenue grew 1.7% on a LFL basis, reflecting price/mix growth of 1.9% and
volume decline of (0.2)%.
The market in the UK, which represents the majority of the Europe and Americas
segment, remains highly competitive with a bifurcation of demand as many
consumers seek ever-better value and others remain willing and able to spend
on every-day luxuries. In this context, Sanctuary Spa grew double-digits,
reflecting record Christmas gifting with expanded distribution and positions
in-store, and was the primary driver of overall growth for the region.
Original Source also grew double-digits, fuelled by its "Nature Hits
Different" campaign which incorporated sponsorship of Netflix's Celebrity Bear
Hunt, YouTube advertising and a mass reach campaign featuring Original Source
branded 'wraps' on London Buses. Childs Farm grew double-digits with continued
success from the partnerships with Bluey and Kellogg's, while Carex and
Imperial Leather grew low single-digits following strong growth in the
comparative period.
This growth was offset by a decline in St.Tropez, which is at the start of its
turnaround under a new strategy. Here, an improved performance in the US,
where revenue grew 12% reflecting early benefits from the partnership with
Emerson, was more than offset by a reduction elsewhere reflecting high levels
of inventory at certain retailers. Revenue also declined in a number of our
tail brands as we sought to simplify the portfolio, including a reduction in
number of SKUs of Charles Worthington, or due to de-listings.
Adjusted operating profit increased to £22.7 million, with a margin of 22.1%,
up 160bps. This reflects a solid underlying profit performance in the region,
despite the competitive backdrop, together with the planned phasing of
marketing investment, the majority of which will fall in H2. On a statutory
basis, operating profit was £22.0 million - an improvement from £19.6
million in the comparative period.
Asia Pacific
£m unless otherwise stated H1 FY26 H1 FY25 Growth / (decline)
Revenue 87.7 87.7 0.0%
LFL revenue growth (%) 5.2% (1.1)% n/a
Adjusted operating profit 12.2 13.1 (6.9)%
Margin (%) 13.9% 14.9% (100)bps
Operating profit 16.9 13.1 29.0%
Margin (%) 19.3% 14.9% 440bps
Revenue grew 5.2% on a like for like basis with price/mix growth of 3.4%, and
volume growth of 1.8%. The flat performance on a reported basis reflects the
depreciation of the Indonesian Rupiah and Australian Dollar.
Indonesia grew 9.4% on a LFL basis in the first half of the year, reflecting
continued strong innovation and commercial execution with further growth in
our live-streaming channel. We successfully re-staged the Cussons Baby range,
elevating the brand's modernity and relevance for today's Gen Z parents. The
introduction of the Cussons Baby Cuddle Calm range, has allowed us to
premiumise the positioning, targeting a more affluent consumer.
Revenue in ANZ grew 1.7% on a like for like basis, as we continued to grow
market share across each of our three main brands - Morning Fresh, Radiant and
Rafferty's Garden. Rafferty's Garden market share is now higher than it has
been for three years, with distribution gains in key retail partners and is
also benefiting from price-mix optimisation. Outside of the three main brands,
we have launched a 1 litre Original Source pack into the market, unlocking
greater distribution, resulting in improved market share.
Adjusted operating margin reduced by 100bps to 13.9% which includes a
provision of £1.0 million related to historical VAT. On a statutory basis,
the margin improved by 440bps, due to profit on disposals of £4.8 million
relating to the sale of surplus assets in Indonesia.
Africa
£m unless otherwise stated H1 FY26 H1 FY25 Growth / (decline)
Revenue 79.1 60.6 30.5%
LFL revenue growth (%) 27.7% 28.0% n/a
Adjusted operating profit (ex. share of joint venture) 11.6 4.0 190.0%
Margin % 14.7% 6.6% 810bps
Operating profit 23.3 1.6 1,356.3%
Margin (%) 29.5% 2.6% 2,690bps
Adjusted operating profit 11.6 8.7 33.3%
Margin (%) 14.7% 14.4% 30bps
LFL revenue growth of 27.7% was driven by 15.0% price/mix improvements and
12.7% volume growth. On a statutory basis, revenue grew by 30.5% reflecting
the Naira appreciation compared to the prior period.
In Nigeria Family Care, LFL revenue grew by more than 30%, with double-digit
growth across our key Brands. Growth was driven by pricing, due to the
annualisation benefit from pricing waves taken in H2 FY25. Despite these price
increases, volumes on a number of our key brands of Stella, Cussons Baby and
Morning Fresh grew through continued strengthening of route-to-market
capabilities. Stella also saw strong export growth. Market shares have,
overall, been maintained due to continued growth in distribution, with more
than 200,000 stores now served directly, up from 171,000 at the end of FY25.
We have also continued to increase the number of 'Golden outlets' -
directly-served stores with opportunity for improved returns and where we
place disproportionate focus. The period also benefited from the impact of the
successful launch of Carex towards the end of FY25. The brand is now on track
to generate more than £3 million of revenue in FY26, with accretive margins.
Electricals revenue was £25.3 million and grew 35% on a LFL basis and 37% on
a reported basis. This was driven by continued price increases and favourable
mix as compares to a softer performance in H1 FY25 where volumes were impacted
by some supply chain disruption.
Excluding the PZ Wilmar income in the comparative period, adjusted operating
profit increased by £7.6 million in Africa, with an improvement in margin of
810bps. This includes an approximately £6 million benefit due to the
revaluation of US Dollar-denominated trading liabilities in Nigeria following
the c.10% appreciation of the Naira compared to the prior period balance sheet
date.
On a statutory basis, operating profit was £23.3 million, an increase from
£1.6 million in the comparative period. H1 FY26 Statutory Operating Profit
includes £8.3 million related to gains on disposal of surplus asset sales in
Nigeria and Ghana and £3.4 million related to FX gains arising on loans
previously classified as permanent as equity and accounted for in reserves.
Central
£m unless otherwise stated H1 FY26 H1 FY25 Growth / (decline)
Adjusted operating loss (10.9) (15.5) (29.7)%
Operating loss (22.1) (20.9) 5.7%
Adjusted central operating loss reduced by £4.6 million reflecting savings
made across a number of central functions, as well as an increase in
inter-company income from the Business Units.
On a statutory basis, central operating loss increased in the most part due to
costs incurred on the sale of our 50% stake in PZ Wilmar amounting to £21.4
million which offset the proceeds received in H1 of £11.8 million plus, costs
of £1.4 million relating to the strategic review our African business, which
has now reached its conclusion.
Other financial items
Adjusted operating profit
Adjusted operating profit for the Group was £35.6 million, an increase of
£13.3 million from £22.3 million in the prior period, excluding the income
from the PZ Wilmar joint venture. This was driven primarily by a £4.6 million
decrease in the Central operating loss and a £2.9 million increase in Africa
operating profit. Adjusted operating profit margin increased by 240bps to
13.2%.
Adjusting items
Adjusting items in the period were a credit of £4.5 million before tax. This
relates primarily to the sale of non-operating surplus assets partially offset
by the sale of our 50% stake in PZ Wilmar and costs related to the strategic
review of Africa, and is detailed further in note 4.
After accounting for these adjusting items, the operating profit for the Group
was £40.1 million compared to an operating profit of £13.4 million in the
prior period.
Net finance expense
Net finance expense in the period was £5.8 million compared to a net finance
expense of £7.1 million in the prior period. This was driven mainly by a
reduction in interest expense as a result of lower gross borrowings.
Statutory profit before tax was £34.3 million, £27.9 million higher than the
prior period while adjusted profit before tax was £29.8 million which was
£10.0 million higher than the prior period.
Taxation
The effective tax rate ('ETR') on adjusted profit before tax increased to
28.2% compared to 18.2% in the prior period as a result of two factors.
Firstly, the stronger profitability in our Nigerian business which attracts a
higher rate and which had previously benefited from a deferred tax asset
resulting from the statutory FX losses suffered during FY24. Secondly, the
non-recurrence of income from the PZ Wilmar joint venture which the Group had
previously equity-accounted, recording its 50% share of the joint venture's
post-tax income in operating profit. The Group believes that, subject to
movements in the geographic mix of profits, its future ETR will remain around
current levels.
The statutory tax charge in the period was £23.2 million compared to £2.2
million in the six month period to 30 November 2024, which includes the full
recognition of deferred tax assets resulting from prior statutory FX losses in
Nigeria. In addition to the increase in tax charge as a result of current
profitability in the Group operations, the increase in tax charge is also
driven by an increase in the likelihood of crystallisation of an uncertain tax
position following a recent adverse court ruling in respect of an earlier
period, and its potential impact into succeeding years. It should be noted
that whilst the tax charge has increased reflecting the enhanced risk of
crystallisation, that discussions regarding the impact of the court ruling
remain ongoing.
Profit for the period
Profit for the period was £11.1 million which compared to £4.2 million in
the prior period. Basic earnings per share was 1.40p compared to 1.19p in the
prior period. Adjusted basic earnings per share was 4.37p which compares to
3.89p in the prior period.
Balance sheet and cash flow
Total free cash flow was £23.2 million compared to £22.7 million in the
prior period. The increase reflects primarily an improvement in adjusted
operating profit and reductions in capital expenditure and adjusting items,
partially offset by adverse working capital movement reflecting a higher
proportion of Christmas gifting sales in the UK occurring in November than
anticipated as well as the seasonal build-up of inventory in Nigeria.
£m unless otherwise stated H1 FY26 H1 FY25
Adjusted EBITDA 41.7 33.3
Cash flow impact of adjusting items(4) (3.6) (13.6)
Working capital movement (16.6) 4.6
Capital expenditure (0.9) (1.4)
Share of results of joint venture - (2.3)
Other 2.6 2.1
Free cash flow 23.2 22.7
Net debt as at 29 November 2025 was £84.3 million compared to £112.0 million
at 31 May 2025 reflecting the free cash flow of £23.2 million and disposals
of £27.6 million.
£m unless otherwise stated H1 FY26
Opening net debt 112.0
Free cash flow (23.2)
Net tax, finance and interest costs 16.1
Dividend 8.8
Disposals (27.6)
Other non-operating cash flow (1.8)
Closing net debt 84.3
Cash within Nigeria was £24.3 million as at 29 November 2025.
£m unless otherwise stated H1 FY26 FY25
Total cash 49.9 45.1
Of which cash within Nigeria 24.3 19.9
Gross debt (134.2) (157.1)
Net debt (84.3) (112.0)
Balance sheet rates (NGN/GBP): 1,915 2,136
The Group has a £270.0 million (31 May 2025: £325.0 million) committed
credit facility which is available for general corporate purposes. The credit
facility incorporates both a term loan, of up to £70 million (31 May 2025:
£125.0 million), with the balance as a revolving credit facility (RCF)
structure. Entered into in November 2022, the term loan is a two-year facility
and the RCF a four-year facility, with both facilities retaining two, one-year
extension options. The first option for both RCF and term loan was executed in
October 2023 and the second term loan extension was executed in March 2025
reducing to £70.0 million on 10 November 2026.
As at 29 November 2025, the committed credit facility was £134.5 million
drawn (31 May 2025: £157.5 million) and the headroom was £135.5 million (31
May 2025: £167.5 million).
In addition, the Group retains other unsecured and uncommitted facilities that
are primarily used for trade-related activities in Nigeria where ordinary
trading activities are required to be supported by letters of credit (or
similar). As at 29 November 2025, these amounted to £117.6 million (31 May
2025: £122.1 million) of which £27.2 million, or 23% were utilised (31 May
2025: £33.7 million or 28%). Overdrafts do not form part of the Group's main
borrowing facility and only arise as part of the Group's banking arrangements
with key banking partners. As at 29 November 2025, there were no bank
overdrafts (31 May 2025: £nil).
Foreign exchange
The general appreciation of Sterling against our other currencies resulted in
a £4.1 million reduction to H1 FY25 revenue as set out below.
% of FY25 Average FX rates Revenue impact
revenue H1 FY26 H1 FY25 % change (£m)
GBP 39% 1.00 1.00 - -
NGN (Nigeria) 19% 2,019 2,038 1% 0.4
AUD (Australia) 18% 2.06 1.94 (6)% (2.5)
IDR (Indonesia) 14% 22,071 20,480 (7)% (2.5)
USD (USA) 2% 1.34 1.29 (4)% (0.2)
Other 8% - - 0.7
Total(( 4 (#_ftn4) )) 100% - - (4.1)
Given the materiality of the movement in the Nigerian Naira in recent periods,
the rates used in recent reporting periods are summarised below.
NGN/GBP FY24 FY25
H1 FY25 H1 FY26
Rate used for Income Statement 1,257 2,015 2,038 2,019
Rate used for balance sheet 1,893 2,136 2,124 1,915
Alternative Performance Measures
The Group's business performance is assessed using a number of alternative
performance measures (APMs). These APMs include adjusted profitability
measures where results are presented excluding separately disclosed items
(referred to as adjusting items) as we believe this provides both management
and investors with useful additional information about the Group's performance
and supports a more effective comparison of the Group's financial performance
from one period to the next.
Adjusted Consolidated Income Statement
Unaudited Unaudited
Half year to Half year to
29 November 2025 30 November 2024
Business performance excluding adjusting items Statutory results for the half year Business performance excluding adjusting items Statutory results for the half year
Adjusting Adjusting
items items
£m £m £m £m £m £m
Revenue 269.3 - 269.3 249.3 - 249.3
Cost of sales (160.3) - (160.3) (145.8) - (145.8)
Gross profit 109.0 - 109.0 103.5 - 103.5
Selling and distribution expense (41.9) - (41.9) (41.6) - (41.6)
Administrative expense (31.5) 4.5 (27.0) (39.6) (11.2) (50.8)
Share of results of joint venture - - - 4.7 (2.4) 2.3
Operating profit/(loss) 35.6 4.5 40.1 27.0 (13.6) 13.4
Finance income 1.8 - 1.8 2.2 0.2 2.4
Finance expense (7.6) - (7.6) (9.5) - (9.5)
Net finance (expense)/income (5.8) - (5.8) (7.3) 0.2 (7.1)
-
Net monetary gain arising from hyperinflationary economies - - - 0.1 - 0.1
Profit/(loss) before taxation 29.8 4.5 34.3 19.8 (13.4) 6.4
Taxation (8.4) (14.8) (23.2) (3.6) 1.4 (2.2)
Profit/(loss) for the period 21.4 (10.3) 11.1 16.2 (12.0) 4.2
Attributable to:
Owners of the Parent 18.4 (12.5) 5.9 16.3 (11.3) 5.0
Non-controlling interests 3.0 2.2 5.2 (0.1) (0.7) (0.8)
21.4 (10.3) 11.1 16.2 (12.0) 4.2
Details of adjusting items are provided in Note 4 to the condensed
consolidated interim financial statements. Reconciliations from IFRS reported
results to APMs are set out below.
Alternative Performance Measures (continued)
Adjusted operating profit and adjusted operating margin
Half year to Half year to
29 November 2025 30 November 2024
£m £m
Group
Operating profit from continuing operations 40.1 13.4
Exclude: adjusting items (4.5) 13.6
Adjusted operating profit 35.6 27.0
Revenue 269.3 249.3
Operating margin 14.9% 5.4%
Adjusted operating margin 13.2% 10.8%
By segment
Europe & the Americas:
Operating profit from continuing operations 22.0 19.6
Exclude: adjusting items 0.7 1.1
Adjusted operating profit 22.7 20.7
Revenue 102.5 101.0
Operating margin 21.5% 19.4%
Adjusted operating margin 22.1% 20.5%
Asia Pacific:
Operating profit from continuing operations 16.9 13.1
Exclude: adjusting items (4.7) -
Adjusted operating profit 12.2 13.1
Revenue 87.7 87.7
Operating margin 19.3% 14.9%
Adjusted operating margin 13.9% 14.9%
Africa:
Operating profit from continuing operations 23.3 1.6
Exclude: adjusting items (11.7) 7.1
Adjusted operating profit 11.6 8.7
Revenue 79.1 60.6
Operating margin 29.5% 2.6%
Adjusted operating margin 14.7% 14.4%
Central:
Operating loss from continuing operations (22.1) (20.9)
Exclude: adjusting items 11.2 5.4
Adjusted operating loss (10.9) (15.5)
Alternative Performance Measures (continued)
Adjusted gross profit and gross margin
Half year to Half year to
29 November 2025 30 November 2024
£m £m
Gross profit 109.0 103.5
Exclude: adjusting items - -
Adjusted gross profit 109.0 103.5
Revenue 269.3 249.3
Gross margin 40.5% 41.5%
Adjusted gross margin 40.5% 41.5%
Adjusted share of results of joint venture
Half year to Half year to
29 November 2025 30 November 2024
£m £m
Share of results of joint venture - 2.3
Exclude: adjusting items - 2.4
Adjusted share of results of joint venture - 4.7
Adjusted profit before taxation
Half year to Half year to
29 November 2025 30 November 2024
£m £m
Profit before taxation from continuing operations 34.3 6.4
Exclude: adjusting items (4.5) 13.4
Adjusted profit before taxation 29.8 19.8
Adjusted Earnings Before Interest Depreciation and Amortisation (Adjusted
EBITDA)
Half year to Half year to
29 November 2025 30 November 2024
£m £m
Profit before taxation from continuing operations 34.3 6.4
Add back: net finance expense 5.8 7.1
Add back: depreciation 4.0 4.1
Add back: amortisation 2.1 2.1
46.2 19.7
Exclude: adjusting items(1) (4.5) 13.6
Adjusted EBITDA 41.7 33.3
(1) Excludes adjusting items relating to impairment and finance income.
Alternative Performance Measures (continued)
Adjusted earnings per share
Half year to Half year to
29 November 2025 30 November 2024
pence pence
Basic earnings per share 1.40 1.19
Exclude: adjusting items 2.97 2.70
Adjusted basic earnings per share 4.37 3.89
Diluted earnings per share 1.40 1.19
Exclude: adjusting items 2.96 2.68
Adjusted diluted earnings per share 4.36 3.87
(
)
Free cash flow
Half year to Half year to
29 November 2025 30 November 2024
£m £m
Cash generated from operations 24.1 24.1
Deduct: purchase of property, plant and equipment and software (0.9) (1.4)
Free cash flow 23.2 22.7
CONDENSED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
Half year to Half year to Year to
29 November 2025 30 November 2024 31 May
2025
Notes £m £m £m
Revenue 3 269.3 249.3 513.8
Cost of sales (160.3) (145.8) (307.0)
Gross profit 109.0 103.5 206.8
Selling and distribution expense (41.9) (41.6) (85.4)
Administrative expense (32.7) (50.8) (106.4)
Other operating income 4 13.1 - -
Loss on disposal of joint venture undertakings 13 (7.4) - -
Share of results of joint venture - 2.3 5.6
Operating profit 3 40.1 13.4 20.6
Finance income 1.8 2.4 3.9
Finance expense (7.6) (9.5) (18.0)
Net finance expense (5.8) (7.1) (14.1)
Net monetary gain arising from hyperinflationary economies(2) - 0.1 -
Profit before taxation 34.3 6.4 6.5
Taxation 7 (23.2) (2.2) (11.7)
Profit/(loss) for the period/year(1) 11.1 4.2 (5.2)
Attributable to:
Owners of the Parent 5.9 5.0 (5.8)
Non-controlling interests 5.2 (0.8) 0.6
11.1 4.2 (5.2)
Earnings/(loss) per ordinary share(1)
Basic (p) 1.40 1.19 (1.38)
Diluted (p) 1.40 1.19 (1.38)
(1) Wholly derived from continuing operations.
(2) Represents the hyperinflation impact in relation to Ghana.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
Half year to 29 November 2025 Half year to Year to
30 November 2024 31 May
2025
£m £m £m
Profit/(loss) for the period/year 11.1 4.2 (5.2)
Other comprehensive income/(expense)
Items that will not be reclassified to income statement:
Re-measurement gain/(loss) on net retirement benefit surplus 1.6 0.3 (4.6)
Taxation on other comprehensive (expense)/income (0.4) (0.1) 1.2
Total items that will not be reclassified to income statement 1.2 0.2 (3.4)
Items that may be subsequently reclassified to income statement:
Exchange differences on translation of foreign operations(1) 1.0 2.8 0.2
Reclassification of currency translation reserve on the disposal of joint 13.6 - -
venture undertaking
Share of other comprehensive expense of joint venture accounted for using the - (0.1) (1.0)
equity method
Cash flow hedges - fair value movements net of amounts reclassified 0.1 0.6 0.2
Total items that may be subsequently reclassified to income statement 14.7 3.3 (0.6)
Other comprehensive income/(expense) for the period/year 15.9 3.5 (4.0)
Total comprehensive income/(expense) for the period/year 27.0 7.7 (9.2)
Attributable to:
Owners of the Parent 21.8 7.9 (10.1)
Non-controlling interests 5.2 (0.2) 0.9
27.0 7.7 (9.2)
( )
(1) Includes a hyperinflation adjustment of £nil (30 November 2024: £0.5
million) in relation to Ghana.
CONDENSED CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
29 November 2025 30 November 2024 31 May
2025
Notes £m £m £m
Assets
Non-current assets
Goodwill and other intangible assets 5 253.2 276.9 253.9
Property, plant and equipment 42.9 40.9 43.4
Investment properties 11.7 7.0 10.0
Right-of-use assets 12.1 8.7 13.6
Net investments in joint venture - 2.3 -
Trade and other receivables 2.5 29.3 2.1
Deferred taxation assets 19.9 21.9 15.8
Current tax receivable - - 4.8
Retirement benefit surplus 29.3 33.1 27.4
371.6 420.1 371.0
Current assets
Inventories 85.5 78.5 70.0
Trade and other receivables 133.2 104.7 119.2
Derivative financial assets 12 0.4 0.7 0.4
Current taxation receivable 2.0 4.3 0.1
Cash and cash equivalents 10 49.9 46.4 45.1
271.0 234.6 234.8
Assets held for sale 1.7 5.0 9.4
272.7 239.6 244.2
Total assets 644.3 659.7 615.2
Equity
Share capital 4.3 4.3 4.3
Treasury shares (29.1) (33.0) (32.0)
Capital redemption reserve 0.7 0.7 0.7
Hedging reserve (0.1) 0.2 (0.2)
Currency translation reserve (143.6) (157.5) (158.4)
Retained earnings 396.4 429.0 399.6
Other reserves 6.2 7.6 5.7
Attributable to owners of the Parent 234.8 251.3 219.7
Non-controlling interests (1.0) (7.3) (6.2)
Total equity 233.8 244.0 213.5
CONDENSED CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
29 November 2025 30 November 2024 31 May
2025
Notes £m £m £m
Liabilities
Non-current liabilities
Borrowings 10 64.5 152.5 102.4
Other payables 1.0 0.7 0.6
Lease liabilities 10 11.5 9.1 12.6
Deferred taxation liabilities 36.8 38.7 34.1
Retirement and other long-term employee benefit obligations 12.2 12.6 11.7
126.0 213.6 161.4
Current liabilities
Borrowings 10 69.7 - 54.7
Trade and other payables 171.8 174.9 155.1
Lease liabilities 10 2.3 1.6 2.3
Derivative financial liabilities 12 0.3 0.2 0.4
Current taxation payable 40.1 24.8 27.5
Provisions 0.3 0.6 0.3
284.5 202.1 240.3
Total liabilities 410.5 415.7 401.7
Total equity and liabilities 644.3 659.7 615.2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of the Parent
Capital Currency Non-
Share Treasury redemption Hedging translation Retained Other controlling Total
capital shares reserve reserve(1) reserve(2) earnings reserves(3) interests equity
£m £m £m £m £m £m £m £m £m
At 1 June 2024 4.3 (34.5) 0.7 (0.4) (159.6) 425.3 6.5 (7.1) 235.2
Profit/(loss) for the period - - - - - 5.0 - (0.8) 4.2
Other comprehensive income for the period - - - 0.6 2.1 0.2 - 0.6 3.5
Total comprehensive income/(expense) for the period - - - 0.6 2.1 5.2 - (0.2) 7.7
Transactions with owners:
Share-based payments - - - - - - 1.1 - 1.1
Shares issued from ESOT - 1.5 - - - (1.5) - - -
Total transactions with owners recognised directly in equity - 1.5 - - - (1.5) 1.1 - 1.1
At 30 November 2024 4.3 (33.0) 0.7 0.2 (157.5) 429.0 7.6 (7.3) 244.0
Attributable to owners of the Parent
Capital Currency Non-
Share Treasury redemption Hedging translation Retained Other controlling Total
capital shares reserve reserve(1) reserve(2) earnings reserves(3) interests equity
£m £m £m £m £m £m £m £m £m
At 1 June 2025 4.3 (32.0) 0.7 (0.2) (158.4) 399.6 5.7 (6.2) 213.5
Profit for the period - - - - - 5.9 - 5.2 11.1
Reclassification of currency translation adjustment reserve on the disposal of - - - - 13.6 - - - 13.6
joint venture undertaking
Other comprehensive income for the period - - - 0.1 1.2 1.0 - - 2.3
Total comprehensive income for the period - - - 0.1 14.8 6.9 - 5.2 27.0
Transactions with owners:
Ordinary dividends - - - - - (8.8) - - (8.8)
Share-based payments - - - - - 1.6 0.5 - 2.1
Shares issued from ESOT - 2.9 - - - (2.9) - - -
Total transactions with owners recognised directly in equity - 2.9 - - - (10.1) 0.5 - (6.7)
At 29 November 2025 4.3 (29.1) 0.7 (0.1) (143.6) 396.4 6.2 (1.0) 233.8
(1) Reserve relates to continuing hedges.
(2) Includes a cumulative
hyperinflation adjustment to 29 November 2025 of £1.9 million relating to
Ghana (half year ended 30 November 2024: £4.1 million).
(3) Other reserves relate to the Group's share-based payment schemes.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
Half year to Half year to Year to
29 November 2025 30 November 2024 31 May
2025
Notes £m £m £m
Cash flows from operating activities
Cash generated from operations 9 24.1 24.1 49.2
Interest paid (6.3) (8.0) (14.9)
Taxation paid (10.8) (5.8) (10.8)
Net cash generated from operating activities 7.0 10.3 23.5
Cash flows from investing activities
Interest received 1.0 1.3 2.2
Purchase of fixed assets (0.9) (1.4) (6.9)
Proceeds from disposal of property, plant and equipment 0.1 - 0.9
Cash flow from disposal of current asset investment - - 0.9
Cash flow from disposal of joint venture undertaking 11.8 - -
Cash flow from disposal of investment properties 15.8 - -
Rental income 0.6 - 1.1
Loans repaid by joint venture - 2.5 2.5
Net cash generated from investing activities 28.4 2.4 0.7
Cash flows from financing activities
Dividends paid to Company shareholders 8 (8.8) - (15.1)
Acquisition of non-controlling interests - - (0.2)
Repayment of lease liabilities (1.2) (1.4) (3.5)
Repayment of borrowings 10 (158.0) (88.3) (165.7)
Proceeds from borrowings 10 135.0 74.0 156.0
Financing fees paid on committed credit facility - - (0.2)
Net cash used in financing activities (33.0) (15.7) (28.7)
Net decrease in cash and cash equivalents 10 2.4 (3.0) (4.5)
Effect of foreign exchange rates 10 2.4 (1.9) (1.7)
Cash and cash equivalents at the beginning of the period/year 10 45.1 51.3 51.3
Cash and cash equivalents at the end of the period/year 10 49.9 46.4 45.1
1. Basis of preparation
PZ Cussons plc (the Company) is a public limited company incorporated in
England and Wales. In these condensed consolidated interim financial
statements (interim financial statements), 'Group' means the Company and all
its subsidiaries.
These interim financial statements for the half year ended 29 November 2025,
which have been reviewed, not audited, have been prepared in accordance with
the Disclosure Guidance and Transparency Rules (DTR) of the Financial Conduct
Authority and in accordance with IAS 34 Interim Financial Reporting as adopted
by the UK. As required by the Disclosure Guidance and Transparency Rules of
the Financial Conduct Authority the condensed set of interim financial
statements has been prepared applying the accounting policies and presentation
that were applied in the company's published consolidated financial statements
for the year ended 31 May 2025, which were prepared in accordance with
UK-adopted International Accounting Standards (IAS).
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Group
Review. The financial position of the Group and liquidity position are
described within the Financial Review section. Management has prepared an
updated base case forecast for the going concern period and, consistent with
the approach taken at 31 May 2025, has modelled the following severe but
plausible downside scenarios: 5% reduction in Group revenue, Group gross
margin decline of 200bps and a combination of revenue decline and margin
decline. None of these severe but plausible scenarios, either separately or in
combination, forecast a breach in the interest cover covenant before
management action, and there remain actions available to management should
they be required. Due to its footprint in Nigeria, the Group is exposed to
Naira exchange rate volatility. So far in FY26 and through FY25, the Naira
exchange rate has been more stable. Sensitivities in relation to Naira
exchange rate movements have been factored into base case forecasts such that
no further severe but plausible scenarios are considered necessary. Therefore,
while the Group remains exposed to fluctuations in the Naira exchange rate,
the Directors have determined that this does not give rise to a material
uncertainty. The Directors consider it appropriate to continue to adopt the
going concern basis in preparing the interim financial statements.
The Group's risk management framework is explained on pages 30 to 32 of our
2025 Annual Report and Accounts. The identified principal risks are considered
unchanged from those outlined on pages 33 to 38 of our 2025 Annual Report and
Accounts. These are: macro-economic and financial volatility including foreign
exchange; IT and information security; business transformation; talent
development and retention; consumer and customer trends; geopolitical
instability; legal and regulatory compliance; sustainability and the
environment; consumer safety; and supply chain and logistics.
Certain business units have a degree of seasonality with the biggest factors
being the weather and Christmas. However, no individual reporting segment is
seasonal as a whole and therefore no further analysis is provided.
The interim financial statements for the half year ended 29 November 2025 do
not constitute statutory accounts within the meaning of section 434 and 435 of
the Companies Act 2006. The financial information set out in this document
relating to the year ended 31 May 2025 does not constitute statutory accounts
for that year. Full audited statutory accounts of the Group in respect of that
financial year were approved by the Board of Directors on 16 September 2025
and have been delivered to the Registrar of Companies. The report of the
auditors on these statutory accounts was unqualified and did not contain a
statement under section 498 of the Companies Act 2006.
2. Accounting policies
The accounting policies are consistent with those of the Annual Report and
Accounts for the year ended 31 May 2025. Taxes on income in the interim
periods are accrued using the tax rate that would be applicable to the
expected total annual profit or loss before taxation.
New and amended accounting standards adopted by the Group
The following new and amended standards are effective from 1 January 2025 but
does not have a material effect on the Group's financial statements:
· Lack of Exchangeability (Amendments to IAS 21 The
effects of changes in foreign exchange rates)
2. Accounting policies (continued)
New accounting standards and interpretations in issue but not yet effective
A number of new standards and interpretations are effective for annual periods
beginning on or after 1 January 2026 and earlier application is permitted,
however, the Group has not early adopted them in preparing these interim
financial statements:
· Amendments to the Classification and Measurement of
Financial Instruments - amendments to IFRS 9 and IFRS 7 (effective 1 January
2026)
· Annual improvements to IFRS - Volume 11 (effective 1
January 2026)
· IFRS 18 Presentation and Disclosure in Financial
Statements (effective 1 January 2027)
· IFRS 19 Subsidiaries without Public Accountability:
Disclosures (effective 1 January 2027)
Judgements and estimates
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
In preparing these interim financial statements, the significant judgements
made by management in applying the Group's accounting policies and the key
sources of estimation uncertainty were the same as those that applied to the
annual consolidated financial statements for the year ended 31 May 2025 which
are described in note 1 of the 2025 Annual Report and Accounts. To the extent
that estimates have been updated at 29 November 2025, disclosure of revised
estimates has been included within the relevant notes to these interim
financial statements as follows:
Assessment of impairment of goodwill and other indefinite life assets - see
note 5
Current taxation - see note 7
Pensions - see note 11
3. Segmental analysis
The segmental information presented in this note is consistent with management
reporting provided to the Executive Committee
(ExCo) which is the Chief Operating Decision-Maker (CODM). The CODM reviews
the Group's internal reporting in order to assess performance and allocate
resources. The CODM considers the business from a geographic perspective, with
Europe & the Americas, Asia Pacific and Africa being the operating
segments. In accordance with IFRS 8 Operating Segments, the ExCo has
identified these as the reportable segments.
The CODM assesses the performance based on operating profit before adjusting
items. Revenue and operating profit of the Europe & the Americas and Asia
Pacific segments arise from the sale of Hygiene, Beauty and Baby products.
Revenue and operating profit from the Africa segment also arise from the sale
of Hygiene, Beauty and Baby products as well as Electrical products. The
prices between Group companies for intra-group sales of materials,
manufactured goods, and charges for franchise fees and royalties are on an
arm's length basis.
Central includes expenditure associated with the global headquarters and above
market functions net of recharges to our regions. Reporting used by the CODM
to assess performance does contain information about brand specific
performance, however global segmentation between the portfolio of brands is
not part of the regular internally reported financial information.
Business segments
Half year to 29 November 2025 (unaudited) Europe Asia
& the Americas Pacific Africa Central Eliminations Total
£m £m £m £m £m £m
Gross segment revenue 103.5 89.1 79.1 24.5 (26.9) 269.3
Inter-segment revenue (1.0) (1.4) - (24.5) 26.9 -
Revenue 102.5 87.7 79.1 - - 269.3
Segmental operating profit/(loss) before adjusting items and share of results 22.7 12.2 11.6 (10.9) - 35.6
of joint venture
Share of results of joint venture - - - - - -
Segmental operating profit/(loss) before adjusting items 22.7 12.2 11.6 (10.9) - 35.6
Adjusting Items (0.7) 4.7 11.7 (11.2) - 4.5
Segmental operating profit/(loss) 22.0 16.9 23.3 (22.1) - 40.1
Finance income 1.8
Finance expense (7.6)
Net monetary gain arising from hyperinflationary economies -
Profit before taxation 34.3
3. Segmental analysis (continued)
Half year to 30 November 2024 (unaudited) Europe Asia
& the Americas Pacific Africa Central Eliminations Total
£m £m £m £m £m £m
Gross segment revenue 102.7 88.6 60.6 21.1 (23.7) 249.3
Inter-segment revenue (1.7) (0.9) - (21.1) 23.7 -
Revenue 101.0 87.7 60.6 - - 249.3
Segmental operating profit/(loss) before adjusting items and share of results 20.7 13.1 4.0 (15.5) - 22.3
of joint venture
Share of results of joint venture - - 4.7 - - 4.7
Segmental operating profit/(loss) before adjusting items 20.7 13.1 8.7 (15.5) - 27.0
Adjusting Items (1.1) - (7.1) (5.4) - (13.6)
Segmental operating (loss)/profit 19.6 13.1 1.6 (20.9) - 13.4
Finance income 2.4
Finance expense (9.5)
Net monetary loss arising from hyperinflationary economies 0.1
Profit before taxation 6.4
Year to 31 May 2025 (audited) Europe Asia
& the Americas Pacific Africa Central Eliminations Total
£m £m £m £m £m £m
Gross segment revenue 202.5 175.3 140.9 40.2 (45.1) 513.8
Inter-segment revenue (3.1) (1.8) - (40.2) 45.1 -
Revenue 199.4 173.5 140.9 - - 513.8
Segmental operating profit/(loss) before adjusting items and share of results 36.8 25.2 16.3 (30.5) - 47.8
of joint venture
Share of results of joint venture - - 7.1 - - 7.1
Segmental operating profit/(loss) before adjusting items 36.8 25.2 23.4 (30.5) - 54.9
Adjusting Items 14.1 (0.1) (4.5) (43.8) - (34.3)
Segmental operating profit/(loss) 50.9 25.1 18.9 (74.3) - 20.6
Finance income 3.9
Finance expense (18.0)
Net monetary loss arising from hyperinflationary economies -
Loss before taxation 6.5
The Group analyses its net revenue by the following categories:
Unaudited Unaudited Audited
Half year to Half year to Year to
29 November 2025 30 November 2024 31 May
2025
£m £m £m
Hygiene 149.7 139.4 285.5
Baby 56.5 53.2 106.6
Beauty 32.9 34.1 65.4
Electricals 25.3 18.5 47.0
Other 4.9 4.1 9.3
269.3 249.3 513.8
4. Adjusting items
Adjusting items expense/(income), all of which are within continuing
operations, comprise:
Unaudited Unaudited Audited
Half year to Half year to Year to
29 November 2025 30 November 2024 31 May
£m £m 2025
£m
Simplification and transformation(1) (10.8) 6.7 8.7
Acquisition and disposal-related items(2) 9.7 (0.2) 1.7
Impairment charge(3) - - 18.8
Foreign exchange losses arising on loans previously classified as permanent as (3.4) 4.5 3.9
equity(3)
Foreign exchange losses arising on loans previously classified as permanent as - 2.4 1.5
equity to joint venture undertaking(4)
Adjusting items before taxation (4.5) 13.4 34.6
Taxation 14.8 (1.4) 2.7
Adjusting items after taxation 10.3 12.0 37.3
(1) In H1 FY26, amount of (£13.1m) included in other operating income in
Consolidated Income Statement. All other amounts included in administrative
expense in the Consolidated Income Statement.
(2) In H1 FY26, amount of £7.4m included in loss in disposal of joint venture
undertakings in Consolidated Income Statement. All other amounts included in
administrative expense in the Consolidated Income Statement.
(3) All amounts included in administrative expense In the Consolidated Income
Statement.
(4) Included in share of results of joint venture in the Consolidated Income
Statement.
Simplification and transformation
For the half year ended 29 November 2025 and 30 November 2024, these costs
primarily relate to the strategic reviews involving our Africa business and
the St.Tropez brand and our global cost optimisation programme, such costs
total £2.3 million (30 November 2024: £6.7 million).
Also included within this category is a gain on disposal of £13.1 million for
certain non-core properties as follows:
£ million
Total proceeds (cash) 15.8
Net assets disposed:
Investment properties (1.3)
Transaction costs (1.4)
Gain on disposal 13.1
Acquisition and disposal-related items
The loss of £9.7 million is mainly driven by the loss on disposal of the
investment in PZ Wilmar Limited of £7.4 million, see note 13. A further £2.3
million relates to foreign exchange losses on foreign currency forward
contracts directly attributable to the sale of PZ Wilmar Limited but not
designated as formal hedges.
For the half year ended 30 November 2024, the income relates to the
remeasurement of the deferred consideration for the Childs Farm acquisition.
Impairment charge
For the half year ended 29 November 2025, the charge was £nil (2024: £nil).
Foreign exchange losses arising on loans previously designated as permanent as
equity (including to joint venture)
For the half year ended 29 November 2025 and 30 November 2024, this primarily
relates to realised and unrealised foreign exchange losses resulting from the
Nigerian Naira devaluation on loans with the joint venture undertaking (period
ended 30 November 2024 only) and subsidiary undertakings which were
de-designated from permanent as equity in the year ended 31 May 2024.
5. Goodwill and other intangible assets
In the half year ended 29 November 2025, the impairment charge was £nil (half
year ended 30 November 2024: £nil).
Details of key assumptions applied in determining value-in-use can be found in
the 2025 Group Annual Report and Accounts, pages 133 - 136.
6. Capital commitments
At 29 November 2025, the Group had entered into commitments for the
acquisition of property, plant and equipment amounting to £0.9 million (30
November 2024: £0.7 million). At 29 November 2025, the Group's share in the
capital commitments of joint ventures was £nil (30 November 2024: £nil).
7. Taxation
Income tax expense is recognised on management's best estimate of the annual
tax rate expected for the full financial year. The effective tax
rate in relation to continuing operations for the half year ended 29 November
2025 is 67.6% (half year ended 30 November 2024: 33.5%). Before adjusting
items, the effective tax rate is 28.2% (half year ended 30 November 2024:
18.2%).
The calculation of the Group's total tax charge necessarily involves a degree
of estimation and judgement in respect of certain items whose tax treatment
cannot be finally determined until resolution has been reached with the
relevant tax authority or, as appropriate, through a formal legal process.
At 29 November 2025, the Group had a corporate tax provision of £35.6
million, contingent liabilities of £8.9 million and contingent assets of
£nil in respect of such uncertain tax positions (31 May 2025: provision of
£23.1 million, contingent liabilities of £18.5 million and contingent assets
of £0.5 million). The increase in the provision reflects a recent adverse
court ruling in respect of an earlier period. This outcome has also resulted
in a revised assessment of the potential risk crystallisation for later years,
and as a result those amounts previously disclosed as a contingent liability
have now been recognised as a provision. Discussions relating to the risk of
crystallisation remain ongoing and subject to a formal Mutual Agreement
Procedure claim with the relevant tax authorities.
The Group is subject to routine tax audits in all of its operating
jurisdictions and certain assessments take place in overseas markets where
there is a history of large claims being received, albeit which are considered
to have little or no basis. Contingent liabilities are those uncertain tax
risks that that the Group considers to have a possible risk of
crystallisation.
On 20 June 2023, Finance (No.2) Act 2023 was substantively enacted in the UK,
introducing a global minimum tax rate of 15%. The legislation implements a
domestic top-up tax and a multi-national top-up tax effective for accounting
periods on or after 31 December 2023. As in the prior year, the Group has
applied the exception allowed by an amendment to IAS 12 Income Taxes to
recognising and disclosing information about deferred tax assets and
liabilities relating to top-up income taxes. The Group is not currently
within the scope of Pillar Two rules.
8. Dividends
An interim dividend of 1.50p per share for the half year to 29 November 2025
(30 November 2024: 1.50p) has been declared totalling £6.3 million (30
November 2024: £6.3 million) and is payable on 9 April 2026 to shareholders
on the register at the close of business on 6 March 2026.
After the year ended 31 May 2025, a final dividend of 2.10p per share,
totalling £8.8 million, was approved by shareholders and paid on 27 November
2025.
9. Reconciliation of profit before taxation to cash generated from
operations
Unaudited Unaudited Audited
Half year to Half year to Year to
29 November 2025 30 November 2024 31 May
2025
£m £m £m
Profit before taxation 34.3 6.4 6.5
Net finance expense and net monetary gain/(loss) arising from 5.8 7.0 14.1
hyperinflationary economies
Operating profit 40.1 13.4 20.6
Depreciation 4.0 4.1 8.0
Amortisation 2.1 2.1 4.1
Impairment of tangible and intangible assets - - 35.3
Impairment of current asset investment - - (16.5)
Impairment reversal of current asset investment - - (0.5)
Profit on disposal of other assets - - (1.1)
Loss on disposal of joint venture undertakings 7.4 - -
Gain on disposal of investment properties (13.1) - -
Add back transaction costs on disposal of joint venture undertakings (1.0) - -
Add back transaction costs on disposal of investment properties (1.4) - -
Difference between pension charge and cash contributions 1.1 1.1 1.1
Share-based payment expense 2.1 1.1 2.6
Rental income classified as investing cash flows (0.6) - (1.1)
Share of results of joint venture - (2.3) (5.6)
Operating cash flows before movements in working capital 40.7 19.5 46.9
Movements in working capital:
Inventories (11.8) (12.6) (5.6)
Trade and other receivables (11.8) (6.0) 1.6
Trade and other payables 6.9 23.2 5.6
Provisions 0.1 - 0.7
Cash generated from operations 24.1 24.1 49.2
10. Net debt reconciliation
Group net debt, which is an alternative performance measure, comprises the
following:
Audited Unaudited Unaudited Unaudited Unaudited
At 1 June 2025 Cash flow Foreign exchange Other(1) At 29 November 2025
movements
£m £m £m £m £m
Cash at bank and in hand 38.1 0.6 2.2 - 40.9
Short term deposits 7.0 1.8 0.2 - 9.0
Cash and cash equivalents 45.1 2.4 2.4 - 49.9
Current borrowings (54.7) (15.0) - - (69.7)
Non-current borrowings (102.4) 38.0 - (0.1) (64.5)
Net debt (112.0) 25.4 2.4 (0.1) (84.3)
Lease liabilities (14.9) 1.6 - (0.5) (13.8)
Net debt including lease liabilities (126.9) 27.0 2.4 (0.6) (98.1)
(1) Other includes lease additions, an increase in the lease liability
arising from the unwinding of interest element and unamortised fees on
borrowings.
The Group has a £270.0 million (31 May 2025: £325.0 million) committed
credit facility which is available for general corporate purposes. The credit
facility incorporates both a term loan, of up to £70 million (31 May 2025:
£125.0 million), with the balance as a revolving credit facility (RCF)
structure. Entered into in November 2022, the term loan is a two-year facility
and the RCF a four-year facility, with both facilities retaining two, one-year
extension options. The first option for both RCF and term loan was executed in
October 2023 and the second term loan extension was executed in March 2025
reduced to £70.0 million on 10 November 2025 and maturing 8 November 2026.
As at 29 November 2025, the committed credit facility was £134.5 million
drawn (31 May 2025: £157.5 million) and the headroom was £135.5 million
(31 May 2025: £167.5 million). Current borrowings as at 29 November 2025 are
presented net of £0.3 million (31 May 2025: £0.3 million current; £0.1
million non-current) of unamortised financing fees.
10. Net debt reconciliation (continued)
In addition, the Group retains other unsecured and uncommitted facilities that
are primarily used for trade-related activities in Nigeria where ordinary
trading activities are required to be supported by letters of credit (or
similar). As at 29 November 2025, these amounted to £117.6 million (31
May 2025: £122.1 million) of which £27.2 million, or 23% were utilised
(31 May 2025: £33.7 million or 28%). Overdrafts do not form part of the
Group's main borrowing facility and only arise as part of the Group's banking
arrangements with key banking partners. As at 29 November 2025, there were no
bank overdrafts (31 May 2025: £nil).
11. Retirement benefits
The key financial assumptions (applicable to all UK schemes) applied in the
actuarial review of the pension schemes have been reviewed in the preparation
of these interim financial statements and amended to reflect changes in market
conditions where appropriate from those applied at 31 May 2025. The key
assumptions applied were:
Unaudited Unaudited Audited
Half year to Half year to Year to
29 November 2025 30 November 2024 31 May
2025
Rate of increase in retirement benefits in payment
- pensions in payment 2.7% 2.9% 2.7%
- deferred pensions 2.3% 2.5% 2.4%
Discount rate 5.6% 5.2% 5.8%
Inflation assumption (RPI) 2.8% 3.1% 2.9%
12. Financial instruments
The carrying amounts of each class of financial instruments were:
Financial assets Unaudited Unaudited Audited
29 November 2025 30 November 2024 31 May
£m £m 2025
£m
Derivatives designated as hedging instruments
Forward foreign exchange contracts 0.2 0.5 0.3
Derivatives not designated as hedging instruments
Forward foreign exchange contracts 0.2 0.2 0.1
Debt instruments at amortised cost
Cash and cash equivalents 49.9 46.4 45.1
Net trade receivables and other receivables 126.2 96.1 87.4
Lease receivables 1.9 1.3 1.2
Amounts owed by joint ventures - 1.0 0.7
Long-term loans owed by joint ventures - 28.0 26.4
178.4 173.5 161.2
Financial liabilities Unaudited Unaudited Audited
29 November 2025 30 November 2024 31 May
£m £m 2025
£m
Current interest-bearing loans and borrowings at amortised cost
Bank loans and borrowings 69.7 - 54.7
Non-current interest-bearing loans and borrowings at amortised cost
Bank loans and borrowings 64.5 152.5 102.4
Derivatives designated as hedging instruments
Forward foreign exchange contracts 0.1 0.1 0.2
Derivatives not designated as hedging instruments
Forward foreign exchange contracts 0.2 0.1 0.2
Other financial liabilities at fair value through profit or loss
Other payables - 2.3 -
Other financial liabilities at amortised cost
Trade and other payables 163.6 166.2 149.3
Lease liabilities 13.8 10.7 14.9
311.9 331.9 321.7
12. Financial instruments (continued)
There were no transfers between Level 1, 2 and 3 during the half year ended 29
November 2025 and the year ended 31 May 2025.
At the end of the reporting period, the Group held the following financial
assets and liabilities at fair value:
Unaudited Unaudited Audited Fair value level
29 November 2025 30 November 2024 31 May
2025
£m £m £m
Assets held at fair value
Derivative financial assets 0.4 0.7 0.4 Level 2
Liabilities held at fair value
Derivative financial liabilities 0.3 0.2 0.4 Level 2
Other payables - 2.3 - Level 3
The following is a description of the valuation methodologies and assumptions
used for estimating the fair values:
· Derivative financial instruments - Derivative financial instruments
comprise forward foreign exchange contracts. Fair value is calculated using
observable market data where it is available, including spot rates and
observable forward points, as discounted to reflect the time value of money.
Counterparty credit is monitored. No adjustment to the fair value for credit
risk is made due to materiality.
· Other payables - Other payables held at fair value relate to deferred
purchase consideration on the acquisition of Childs Farm, which was estimated
by applying an appropriate discount rate to the expected future payments. The
key assumptions taken into consideration were the probability of meeting each
performance target and the discount factor. Should the target not have been
met, no consideration would have been payable, and should the discount rate
applied be changed, the fair value of the deferred purchase consideration
would have changed, but the amount of consideration that would ultimately be
paid would not have necessarily changed.
For the financial assets and liabilities not held at fair value, there was no
material difference between their carrying values and their fair values,
except for current borrowings which are presented net of unamortised issuance
costs of £0.3 million (31 May 2025: £0.3 million current; £0.1 million
non-current).
13. Disposals
On 18 June 2025, the Group announced the sale of its 50% investment in its
joint venture undertaking, PZ Wilmar Limited. Cash receipts in respect of
that sale which comprise the sale of the Group's shareholding, sale of land
interests and repayment of receivables due from PZ Wilmar Limited are
described below and within note 14.
On 14 November 2025, as part of the strategic review of its Africa operations
the Group disposed of its 50% shareholding in PZ Wilmar Limited for gross
proceeds of £11.8 million ($15.4 million). PZ Wilmar Limited is a joint
venture undertaking incorporated in Nigeria and was disposed of to Wilmar
Africa Resources Pte Ltd, the Group's joint venture partner. The investment
in PZ Wilmar Limited was classified as an asset held for sale at 31 May
2025. Following its classification as an asset held for sale, the share of
results of the joint venture that have been recognised in the period to 29
November 2025 is £nil (31 May 2025: £5.6 million).
The disposal of the shareholding resulted in a loss on disposal before tax of
£7.4 million in the period ended 29 November 2025, recognised within
adjusting items (see note 4).
The breakdown of the loss before tax on disposal of PZ Wilmar Limited at 29
November 2025, is as follows:
£ million
Total proceeds (cash) 11.8
Net assets disposed:
Investment in joint venture undertaking (4.6)
Cumulative currency translation adjustment (13.6)
Transaction costs incurred in the period ended 29 November 2025 (1.0)
Loss on disposal - recognised within adjusting items (7.4)
Transaction costs incurred within the year ended 31 May 2025 (1.4)
Overall loss on disposal (8.8)
As part of the disposal, a cumulative currency translation adjustment of
£13.6 million was recycled from equity to the Consolidated Income Statement
and recognised within the loss on disposal of joint venture undertakings.
14. Post balance sheet events
On 11 December 2025, the Group announced the conclusion of a strategic review
of its Africa operations, following the decision to retain its Africa
business.
In the period since 29 November 2025, following the sale of its 50%
shareholding in PZ Wilmar Limited, the Group disposed of land interests for
cash proceeds of £9.4 million ($12.4 million). The land disposed and right
of use asset and associated lease liability were all held at a book value of
£nil.
The breakdown of the profit before tax on in respect of these transactions is
as follows:
£ million
Total proceeds (cash) 9.4
Transaction costs (0.1)
Gain on disposal before tax 9.3
It is expected that this gain on disposal will be reported as part of
adjusting items within the results for the year ended 31 May 2026.
In the period since 29 November 2025, following the sale of its 50%
shareholding in PZ Wilmar Limited, the Group received cash of £27.3 million
($35.6 million) in relation to amounts owed by PZ Wilmar Limited which were
included within trade and other receivables at 29 November 2025.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm that these condensed consolidated interim financial
statements have been prepared in accordance with UK adopted International
Accounting Standard 34 Interim Financial Reporting and the Disclosure Guidance
and Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority and that the interim management report includes a fair review of the
information required by DTR 4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred during the
first six months and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
· material related party transactions in the first six months and
any material changes in the related party transactions described in the last
annual report and accounts.
The Directors of PZ Cussons plc are listed on page 32. A list of current
Directors is maintained on the PZ Cussons plc website.
By order of the Board
Mr K Moustafa
Company Secretary
10 February 2026
Independent review report to PZ Cussons plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed PZ Cussons plc's condensed consolidated interim financial
statements (the "interim financial statements") in the interim results of PZ
Cussons plc for the 6 month period ended 29 November 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the condensed consolidated balance sheet as at 29 November 2025;
· the condensed consolidated income statement and the condensed
consolidated statement of comprehensive income for the period then ended;
· the condensed consolidated cash flow statement for the period then
ended;
· the condensed consolidated statement of changes in equity for the
period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the interim results of PZ Cussons
plc have been prepared in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the interim results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The interim results, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the interim results, including the
interim financial statements, the directors are responsible for assessing the
group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the interim results based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
Manchester
10 February 2026
Directors
Chair: D Tyler(1)
Chief Executive Officer: J Myers
Chief Financial Officer: S Pollard
K Bashforth(1)
V Juarez(1)
J Sodha(1)
V Ahuja(1)
(1) Non-Executive Directors
Company Secretary
K Moustafa
Registered Office
Manchester Business Park
3500 Aviator Way
Manchester
M22 5TG
Registered number
00019457
Registrars
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS13 8AE
Website
www.pzcussons.com
1 (#_ftnref1) Adjusts H1 FY25 to remove profit associated with PZ Wilmar
joint venture
2 (#_ftnref2) Based on a USD/GBP rate of 1.36 as at the time of announcement
3 (#_ftnref3) Based on a realised exchange rate of 1.31
4 (#_ftnref4) Table shows the impact of translating H1 FY25 revenue at H1
FY26 foreign exchange rates.
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