PZ Cussons returns to profitable growth

23rd Jul 2013 09:17

Consumer products group PZ Cussons reported a return to profitable growth for the year to end of May, driven by an increase in revenue across all regions.Pre-tax profit was up 16.5% year-on-year to £107.5m, while operating profit climbed 16.1% to £108.4m and revenue jumped 2.8% to £883.2m.Chairman Richard Harvey said growth came from all regions of Europe, Asia and Africa and, in particular, from the key markets of UK, Indonesia and Nigeria."This has been achieved despite challenging external factors such as the difficult trading environment in Europe, high wage inflation in Indonesia and the continuing unrest in the north of Nigeria," he said. "The group's entrepreneurial ability to bring new products to market quickly gives us a competitive advantage and the ability to maintain or increase our leading market shares in our chosen geographies and markets."The company also benefit from a major supply chain optimisation project, announced in March 2012, with the objective of significantly reducing the overhead footprint of the group's manufacturing activities.In the UK Washing and Bathing division, an ongoing programme of new product development ensured that the core brands of Imperial Leather, Carex and Original Source continued to perform well despite a challenging consumer environment.In Australia, the business moved back into profitability following the difficult trading environment in the prior year.Post-year, the group announced the acquisition of Australian baby foods brand Rafferty Garden which is expected to improve Cusson's position in the market.The entire issued share capital of Rafferty was acquired from Australian private equity firm Anacacia for £42.2m in cash.During the year, the company commissioned the palm oil refinery in Nigeria as part of a joint venture with Wilmar to launch a new consumer brand.Looking ahead, the group expects the Wilmar joint venture and the acquisition of Rafferty's Garden to contribute to growth in the new financial year.The board recommended a final dividend of 5.04p per share, bringing the total to 7.39p for the year, a 10% increase from the previous year's 6.717p.Shares were up 3.22% to 400.50p at 10:14 on Tuesday.RD