Cussons does well in Europe despite currency headwinds

29th Jul 2014 08:06

A good performance in Europe helped Imperial Leather soap maker PZ Cussons to froth up annual profits despite the strong pound.Cussons said its UK washing and bathing division performed strongly with all four of its brands doing well.The group is relaunching Imperial Leather this year and said its St Tropez tanning brand was still doing well on the back of marketing featuring supermodel Kate Moss.The European business also benefited from a good showing in smaller markets such as Poland and Greece.Revenue in the year to May 31st fell 2.5% to £861.4m, but operating profit increased 7.4% to £116.4m and pre-tax profit lifted 7% to £115m. Cussons said operating profit would have been 18% higher had it not been for adverse currency movements.Adjusted basic earnings per share rose 8.1% to 17.96p and the group increased its total dividend per share by 5% to 7.76p.The company's African business boosted operating profit in Nigeria despite more disruption in the north of the country and its Asian operation lifted revenue and profit, particularly in Australia and Indonesia, despite currency volatility.Chairman Richard Harvey said trading remained tough but added that the group would keep overhauling its products and pursuing fresh investment opportunities."Our overall performance since the year end has been in line with management expectations," he said.PW