PZ Cussons expects £590m revenue, trading in line with management expectations

PZ Cussons shares were up 1.1% to 199.6p in early morning trading on Monday after the group reported an expected revenue of approximately £590 million in FY 2022, in line with management expectations.

The company mentioned an anticipated like-for-like revenue growth of 3% and a Q4 like-for-like growth of 7%.

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PZ Cussons highlighted that growth continued to be driven by improvements in price/mix, with limited impact on volumes.

The healthcare and hygiene group confirmed its expectations for FY 2022 adjusted pre-tax profits remained unchanged.

The firm noted good revenue momentum in its Must Win Brands, which experienced a 4% rise in Q4. It attributed its growth to an ongoing focus on marketing and execution, alongside a normalisation of supply challenges for US beauty.

PZ Cussons also pointed out its significantly lower rate of decline in Carex on the back of higher demand for its hand hygiene category in the UK as a result of the Covid-19 pandemic.

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“As we close our first full financial year under our new strategy, ‘Building brands for life. Today and for future generations’, I am pleased with the significant progress made in returning the business to sustainable, profitable revenue growth,” said PZ Cussons CEO Jonathan Myers.

“With a new team in place, we have re-focused on the core job of building brands and have started to unlock value through dramatically reducing complexity in our business.”

The firm commented its trading was in line with expectations, however it acknowledged the difficulties plaguing the supply chain as well as inflationary worries.

“The trading environment continues to be challenging, with high input cost inflation and pressures on household budgets. We have plans in place to mitigate the impact of this, as we continue to deliver great value for consumers, whilst also investing behind more premium innovations,” said Myers.

“The recent introduction of our new portfolio brand, Cussons Creations, for the value-conscious consumer, alongside the re-launches of Sanctuary Spa and Imperial Leather, are good examples of such initiatives. They have been well received by customers and have allowed us to secure significant distribution gains.”

“We have great brands and great people and, whilst there is more to be done to deliver against our strategy, we remain excited by the long-term opportunities ahead of us.”

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