PZ Cussons makes a splash with return to profits

13th Jun 2013 16:18

Consumer products group PZ Cussons revealed it had enjoyed a profitable return to growth in its recently completed financial year. The owner of such bathroom fixtures as Imperial Leather, Carex, Original Source said its financial position remained strong with good cash generation and only a small net debt position at the May 31st year-end.In a post-period update, the FTSE 250 group said that its UK Washing and Bathing division had to engage in intense promotional activity to maintain their performance, with a new range of baby products launched to a receptive audience. In the Beauty division, the appointment of Kate Moss as the "new face and body" of St Tropez fake tan has resulted in a positive response, while Strictly Come Dancing judge Darcey Bussell was retained in her role as brand ambassador of a new Sanctuary Active Reverse anti-ageing range.Overseas, the small Greek business remained profitable although at lower levels than the previous year, the Australian business moved "firmly" back into profitability following restructuring, while Indonesia delivered another year of double-digit revenue growth although a weaker rupiah and high wage inflation held back profits growth.Looking forward, the group noted that the group's focus remained on driving revenue growth through "brand innovation and renovation" to push these brands to the forefront of the consumer imagination in such tough trading environments. At the same time, PZ said, "margin improvement initiatives will continue in all areas of the business. The benefit of these will enable further investment to be made in new product development and brand support whilst continuing to deliver a sustainable growth in profitability."Shares in PZ Cussons closed up 2.8% at 375.5 on Thursday. OH