Sales falter at streamlined PZ Cussons

Its traditional markets in Africa, which accounted for 37 per cent of its total revenue, registered an operating loss of £0.6m as a weak Nigerian economy constricted sales and port access issues in Lagos pushed up operating costs.

Performance in its other markets were mixed. Although all of its regions revealed weakening sales, the group did grow market share in both the beauty category in the US, and in the washing and bathing segment in the UK. Meanwhile, the focus brands, which receive the majority of marketing investment and account for roughly two-thirds of the group’s revenue, produced stable results.  

Reported profits were up by over a third, bolstered by the sale of the group's business in Greece for £40.9m, together with lower exceptional charges than in the prior half-year. The strategic focus on core brands, along with efforts to simplify its operations in Nigeria continue. This includes the planned sale of its Polish personal care brand Luksja for £9.2m. The disposal programme is effectively de-risking the balance sheet, with net debt down by more than £40m since the 2018 half-year.

Bloomberg consensus gives adjusted EPS of 11.9p for the May 2020 year-end, rising to 12.4p in FY2021.