Despite a hefty £12m currency drag, PZ Cussons (PZC) grew underlying operating profit by an impressive 7 per cent in the full year. Had it not been for the adverse forex moves, profit would have soared by 18 per cent.
Three factors explain the jump in earnings: 2 per cent underlying sales growth, improved margins and the success of the group's palm oil refinery joint venture in Nigeria. The JV production facility is already close to full capacity, and its oil brands - Mamador and Devon King's - are proving popular with Nigerian consumers.
Europe boasted a strong performance, too, particularly in the UK washing and bathing division. Profit rose 8 per cent to £56.9m, but sales fell following the disposal of the Polish homecare brands. This year Cussons' iconic soap, Imperial Leather, is set for a major relaunch.
Trading in Asia was dampened by adverse currency movements, but still managed decent sales and profit growth. Newly acquired infant food brand Rafferty's Garden is gearing up to launch in Jakarta, Bangkok and Singapore this financial year, having already contributed £19.6m to last year's revenue and £2.2m to profit. PZ Cussons is eyeing further acquisitions, too.
Panmure Gordon expects pre-tax profit of £114m in the current financial year, giving EPS of 18p.
| PZ CUSSONS (PZC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 359p | MARKET VALUE: | £1.5bn | |
| TOUCH: | 354-357p | 12-MONTH HIGH: | 440p | LOW: 320p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 113p* | NET DEBT: | 5% | |
| Year to 31 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 772 | 102 | 14.9 | 5.9 |
| 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 |
| % change | -2 | +31 | +46 | +5 |
Ex-div: 13 Aug Payment: 1 Oct *Includes intangible assets of £288m, or 67p a share | ||||
