TIDMPZC
RNS Number : 0400W
PZ CUSSONS PLC
13 April 2023
13 April 2023
Sixth consecutive quarter of revenue growth - strength and depth
of portfolio driving performance
PZ Cussons plc today issues a trading update for its third
quarter, ended 4 March 2023.
Group Summary [1]
-- Q3 LFL revenue growth of 6.2%, in line with year-to-date performance
-- Europe & the Americas region back to strong revenue
growth and with significantly improved margin
-- Progress against strategy to grow Must Win Brands including:
- L aunching Morning Fresh into the adjacent auto-dishwash category in Australia; and
- Childs Farm performing well with the recent launch of SlumberTime innovation
-- Expect FY23 adjusted profit before tax to be at least in line
with current market estimates [2]
Revenue Q3 YTD
GBPm LFL % LFL %
------ ------ -------
Europe & the Americas 49.3 9.9% (1.2)%
------ ------ -------
Asia Pacific 47.6 1.0% 5.3%
------ ------ -------
Africa 68.4 7.7% 12.6%
------ ------ -------
Group [3] 166.0 6.2% 6.1%
------ ------ -------
Jonathan Myers, Chief Executive Officer, said:
"We have delivered another quarter of mid-single digit revenue
growth, in line with our longer-term ambition. This represents a
sixth consecutive quarter of growth, with the business underpinned
by the strength and depth of our portfolio and our ongoing strategy
to invest behind our brands, build internal capabilities and serve
consumers better.
As anticipated, performance has strengthened in Europe & the
Americas, with a return to revenue growth and a marked improvement
in profitability in the quarter. As a result, we remain confident
in delivering against FY23 expectations and that further strategic
progress will be made in the balance of FY23 and into FY24."
Performance commentary
Group Q3 like for like revenue growth of 6.2% was driven
primarily by price/mix improvements. Reported revenue growth was
13.5%, reflecting the full period contribution of Childs Farm which
was acquired in March 2022 as well as favourable foreign exchange
movements. Year to date, revenue has grown by 6.1% on a LFL
basis.
As anticipated, performance in Europe & the Americas
improved significantly in Q3. This was a result of our strategic
focus on innovation and marketing, with particularly strong
performances from St. Tropez US and the combined Imperial Leather
and Cussons Creations portfolio. Carex revenue declined in Q3
reflecting the reduction in the UK Hand Hygiene category more
broadly. Childs Farm is performing as expected and is on track for
double-digit revenue growth in FY23, on a pro-forma basis.
Asia Pacific performance has been driven by strong growth in
Australia, reflecting continued successful Revenue Growth
Management activity and sustained share gains across our major
brands. We recently launched Morning Fresh into the auto-dishwash
category, leveraging its brand strength with a 50% share in
washing-up liquid. In Indonesia, Cussons Baby revenue declined
slightly, in line with the overall category, reflecting increased
pressure on consumer spending in recent months as well as some
retailer de-stocking.
Africa trading continues in line with our expectations, with all
Must Win Brands in good growth. Strong trading throughout December
and January was partly offset by disrupted demand in Nigeria in
February due to bank note changes and the elections. These
disruptions have largely dissipated and we are now seeing a return
to more normal demand patterns.
Outlook
Although we remain alert to ongoing external volatility, we
continue to expect FY23 adjusted profit before tax to be at least
in line with current market expectations. This includes a 3-4%
benefit, compared to FY22, due to the translation of results of our
overseas operations.
Reporting calendar
PZ Cussons will issue a brief update on trading following the
end of the financial year.
PZ Cussons will host a Childs Farm 'deep-dive' event for
analysts and institutional investors on 4 July. The event will be
led by Sarah Pollard, Chief Financial Officer, and will include
presentations from Paul Yocum, Managing Director of Business
Development, and Andrew Geoghegan, Chief Marketing Transformation
Officer.
Conference call
PZ Cussons management will host a call for analysts and
institutional investors today at 08:00 UK time.
Dial in details are as follows:
+44 20 3936 2999/ +44 808 189 0158
Access Code: 395221
Contact details
Investors
Simon Whittington - IR and Corporate Development Director
+44 (0) 77 1137 2928
Media
Headland PZCussons@headlandconsultancy.com
+44 (0) 20 3805 4822
Susanna Voyle, Stephen Malthouse, Charlie Twigg
Notes to Editors
Unless otherwise stated, all references to revenue growth are on
a like for like ('LFL') basis. See definitions provided in the
interim results announcement for further details.
About PZ Cussons
PZ Cussons is a FTSE250 listed consumer goods business,
headquartered in Manchester, UK. We employ nearly 3,000 people
across our operations in Europe, North America, Asia-Pacific and
Africa. Since our founding in 1884, we have been creating products
to delight, care for and nourish consumers. Across our core
categories of Hygiene, Baby and Beauty, our trusted and well-loved
brands include Carex, Childs Farm, Cussons Baby, Imperial Leather,
Morning Fresh, Original Source, Premier, Sanctuary Spa and St.
Tropez. Sustainability and the wellbeing of our employees and
communities everywhere are at the heart of our business model and
strategy, and captured by our purpose: For everyone, for life, for
good.
Cautionary note regarding forward-looking statements
This announcement contains certain forward-looking statements
relating to expected or anticipated results, performance or events.
Such statements are subject to normal risks associated with the
uncertainties in our business, supply chain and consumer demand
along with risks associated with macro-economic, political and
social factors in the markets in which we operate. Whilst we
believe that the expectations reflected herein are reasonable based
on the information we have as at the date of this announcement,
actual outcomes may vary significantly owing to factors outside the
control of the Group, such as cost of materials or demand for our
products, or within our control such as our investment decisions,
allocation of resources or changes to our plans or strategy. The
Group expressly disclaims any obligation to revise forward-looking
statements made in this or other announcements to reflect changes
in our expectations or circumstances. No reliance may be placed on
the forward- looking statements contained within this
announcement.
[1] Unless otherwise stated all references to revenue growth are
on a like for like ('LFL') basis
[2] Bloomberg consensus of GBP68.1 million as at 11 April
2023
[3] Excludes 'Other' revenue of GBP0.7 million in Q3
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END
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