PZ Cussons Plc
(the “Group”)
AGM Trading Statement
PZ Cussons Plc, a leading international consumer products group, today issues the following trading update which covers the period 1 June 2016 to 27 September 2016, in advance of its Annual General Meeting, to be held at 10:30 today.
Overview of financial performance and position
The board is pleased to announce that the overall performance of the Group during the period has been in line with expectations. The financial position of the Group remains strong with cash generation during the period also in line with expectations.
Trading Update
Europe
In the UK, performance in the washing and bathing division has been robust across the brand portfolio of Imperial Leather, Original Source and Carex with the Group's renovation and innovation strategy continuing to play an important role in holding or growing market shares in a competitive trading environment.
In the beauty division, a poor summer has adversely affected sales of St Tropez in the UK, however sales in the US have been particularly strong. A significant number of new product launches will take place across the portfolio of St Tropez, Sanctuary, Fudge and Charles Worthington over the remainder of the financial year.
Performance in the smaller markets of Poland and Greece has been in line with expectations.
Asia
In Australia, whilst tough trading conditions are evident in all channels, there is a strong new product pipeline in place for the remainder of the year across all categories of personal care, beauty, home care and food and nutrition.
In Indonesia, revenue growth has continued to be strong across both babycare and non-babycare portfolios and performance in the smaller markets of Thailand and the Middle East has been in line with expectations.
Asian results are also benefiting on translation to sterling as a result of the weaker pound.
Africa
In Nigeria, following the introduction of the new flexible exchange rate regime in June which led to a 40% devaluation of the naira, there has been some improvement in liquidity although the currency has continued to weaken on both the interbank and secondary markets.
Performance across personal care, home care, electricals and food and nutrition has been robust in the period. 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.
Performance in the smaller markets of Ghana and Kenya has been in line with expectations.
Outlook
The strength of the Group's brand portfolio and new product pipeline is serving us well and, together with a continued focus on costs, leaves the Group well placed to manage the challenging trading conditions that exist in most markets.
The Group's balance sheet remains strong and well placed to pursue new opportunities as they arise.
A further trading update will be made on 15 December 2016.