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Clean up with PZ Cussons

Fund manager Nick Train recently bought into the personal goods group
Clean up with PZ Cussons

PZ Cussons (PZC), owner of international brands including Imperial Leather soap and St Tropez sun lotion, has had a rough time in recent years. Nigeria was once the personal goods provider’s biggest market, but macroeconomic conditions in the country have worsened – and will be further hit by cratering oil prices. PZ’s other core geographies – Europe, the Americas and Asia – have faced competition from lower-priced rivals. Group revenues have shrunk, investor sentiment has waned. The value of PZ’s stock fell by more than a third over the 12 months to December 2019 with coronavirus fears providing a fresh knock.

IC TIP: Buy at 164p
Tip style
Risk rating
Medium Term
Bull points

Strong established brands in multiple markets

Should benefit from surging demand for soap

Reshaping portfolio

Star fund manager Nick Train has bought in

Bear points

Ongoing challenges in Nigeria


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