PZ Cussons has upgraded its full-year profit guidance after delivering 9.5% like-for-like revenue growth and a 50.5% surge in pre-tax profit during the first half.
The group enjoyed a strong performance across most geographies and investors cheered the news with shares 10% higher at the time of writing.
The personal care group saw particularly strong growth in Nigeria, where double-digit volume growth and market-share gains drove performance. UK sales were led by Sanctuary Spa’s successful Christmas gifting range, whilst Indonesia benefited from innovation and improved commercial execution. Australia and New Zealand returned to category growth with a maintained market share.
Excluding Africa, like-for-like revenue rose 3.2%, with volume growth of 0.7%. Reported revenue increased 8.0%, though currency depreciation in the Australian dollar and Indonesian rupiah impacted translation.
Adjusted operating profit jumped £13.3 million, helped by non-cash foreign exchange gains on Nigerian naira trading liabilities. Pre-tax profit surged 50.5% on lower interest costs, whilst earnings per share climbed 12.3%.
The company has raised its full-year adjusted operating profit guidance to £53-57 million from £50-55 million previously. Net debt fell £27.7 million to approximately 1.0x EBITDA, supported by £23.2 million free cash flow and disposal proceeds.
PZ Cussons received £48.5 million from selling its 50% stake in the PZ Wilmar joint venture, with £3.4 million outstanding. Cost savings remain on track at £5-10 million for the year.
Jonathan Myers, Chief Executive Officer, commented: “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.”