Product expansion in Europe and the performance of acquired businesses provided some ballast for PZ Cussons (PZC) against significant currency headwinds in its overseas markets. Headline numbers were hit by the Nigerian naira's recent precipitous fall, fuelled by the weak oil price, and weakness in the Australian dollar. But operating profit at constant currencies, and adjusting for acquisitions and disposals, grew by 2.7 per cent.
Europe was the standout region in terms of operating profit, with a 13.4 per cent rise for the year on the same adjusted basis, driven by the relaunch of established brands such as Imperial Leather, and extending ranges such as its Original Source shower gel. Management is upbeat about the performance of its Nigerian beverage and cooking oil businesses, despite the threats from Boko Haram and Ebola during the period. Tough trading conditions in Australia restrained its Asia operations, but the group has diversified there with the £45m acquisition of food brand five:am.
PZ Cussons also upped its annual dividend for the 42nd year running - which management claims is a record for a London-listed company.
Analysts at Investec Securities expect pre-tax profit of £113.4m for the year to May 2016, giving EPS of 18.3p.
| PZ CUSSONS (PZC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 354.7p | MARKET VALUE: | £1.5bn | |
| TOUCH: | 354.4-355.3p | 12-MONTH HIGH: | 392.1p | LOW: 292.1p |
| DIVIDEND YIELD: | 2% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 106p* | NET DEBT: | 15% | |
| Year to 31 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 821 | 108 | 16.5 | 6.61 |
| 2012 | 859 | 49 | 8.0 | 6.72 |
| 2013 | 883 | 95 | 14.8 | 7.39 |
| 2014 | 861 | 124 | 21.5 | 7.76 |
| 2015 | 819 | 84 | 12.5 | 8.00 |
| % change | -5 | -32 | -42 | +3 |
Ex-div: 13 Aug Payment: 1 Oct *Includes intangible assets of £357m, or 83p a share | ||||
