PZ CUSSONS PLC Trading Update (8800R)
December 15 2016 - 1:00AM
UK Regulatory
TIDMPZC
RNS Number : 8800R
PZ CUSSONS PLC
15 December 2016
15 December 2016
PZ Cussons Plc
(the "Group")
Trading Update
PZ Cussons Plc announces its trading update in respect of the
half year to 30 November 2016.
Overview
The board announces that the overall performance of the Group
has been in line with expectations with profits broadly flat versus
the comparative period.
The Group's balance sheet remains strong with cash generation
for the period also in line with expectations.
First half trading
Europe
In the UK, performance in the washing and bathing division has
been robust with new product launches under Imperial Leather, Carex
and Original Source ensuring great shelf presence in a challenging
trading environment.
In the beauty division, whilst a poor summer adversely affected
sales of St Tropez in the UK, performance across the brand
portfolio has been good for the remainder of the period, with new
product launches in the second half of the year to include an
extension of the Sanctuary range.
Performance in the smaller markets of Poland and Greece was in
line with expectations.
Asia
In Australia, tough trading conditions have continued across all
categories with higher levels of promotions required. Market shares
have been maintained and new product launches are planned during
the remainder of the year across both HPC and Food & Nutrition
portfolios.
In Indonesia, good growth has continued across the brand
portfolio. Additional brand investment has been incurred in the
first half ahead of significant brand initiatives planned for the
second half including a relaunch of the Cussons Kids range and a
new range of Imperial Leather products.
Performance in the smaller markets of Thailand and the Middle
East was in line with expectations.
Africa
In Nigeria, following the introduction of the new flexible
exchange rate regime in June which led to a 40% devaluation of the
naira, liquidity remains poor with the exchange rate continuing to
weaken on both the interbank and secondary markets.
Market shares across personal care, home care, electricals and
food and nutrition have either been held or grown in the period,
although volumes in all categories are lower as a result of changes
to relative pricing. The Group's diverse brand portfolio with
product offerings at all price points is working well in an
environment where the consumer is under significant inflationary
pressure and down trading to lower price points and sizes.
Performance in the smaller markets of Ghana and Kenya has been
in line with expectations.
Full year outlook
The strength of the Group's brand portfolio and innovation
pipeline continues to ensure that the market shares of our products
remain strong in all markets despite tough trading conditions.
Brand renovation and innovation will underpin the trading result
in the second half in Europe and Asia, with various mitigating
actions planned across the UK businesses to counter higher
costs.
In Nigeria, the brand portfolio is well positioned for peak
season in the country with the Group's heritage and experience
serving it well through very challenging macro conditions.
The Group's balance sheet remains strong and well placed to
pursue new opportunities as they arise.
Interim Announcement
Interim results for the half year to 30 November 2016 will be
announced on Tuesday 24 January 2017.
- ENDS -
This announcement contains inside information.
For further information contact:
PZ Cussons Plc Tel: 0161 435 1236
Brandon Leigh - Chief
Financial Officer
Instinctif Tel: 020 7457 2020
Tim Linacre / Guy Scarborough
This information is provided by RNS
The company news service from the London Stock Exchange
END
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