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Group · Sterling profits only slightly lower at profit before tax and exceptionals of £40.2m (prior period £42.1m) despite a challenging macro environment particularly in the Group's largest market of Nigeria · Brand shares maintained or growing in all the Group's major markets and categories · Strong balance sheet with net debt at 1.5 x EBITDA · Interim dividend increased 2.3% at 2.67p per share Africa · Liquidity in Nigeria remains poor with the exchange rate continuing to weaken on both interbank and secondary markets · Group's diverse brand portfolio working well with product offerings at all price points catering for a consumer under significant inflationary pressure Asia · Tough trading conditions in Australia across all categories with new product launches planned for the second half of the year to improve performance · Good growth across the portfolio in Indonesia with significant brand initiatives planned for the second half of the year including a relaunch of the Cussons Kids range and a new range of Imperial Leather products Europe · Robust performance in the UK Washing and Bathing division with new product launches ensuring great shelf presence in a challenging trading environment · Following a poor summer, performance in the Beauty division has been good for the remainder of the period with new product launches including an extension of the Sanctuary range planned for the second half of the year
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Commenting today, Caroline Silver (Chair) said:
“In this first half of the 2017 financial year, the Group has faced a backdrop full of challenges across most of the markets where we operate. This was by no means unexpected and so, despite this, the results presented today reflect a solid performance with revenue and profit only slightly lower than the previous period.
The strength and breadth of the Group's product portfolio has allowed us to hold or grow the share of our brands in our main markets and product categories. We intend to reinforce this in the second half of the financial year with a number of major launches and relaunches taking place. Our ability to be agile and nimble is a core strength and a differentiator against our larger competitors.
In Nigeria, consumers are faced with an almost doubling of costs for everything they have to buy and in this environment they turn strongly to brands that they know, love and trust. Our diverse range of well established products across multiple categories are well price positioned with good availability across the country.
The balance sheet remains strong, with net debt at 1.5 x EBITDA giving us the flexibility to take advantage of new investment opportunities as and when they arise.
We remain on track to deliver our full year expectations. In this context, the Board has increased the interim dividend by 2.3% to 2.67p per share.”