|
Adjusted results (before exceptional items1) |
Half year to 30 November 2017 |
Half year to |
Reported % change |
Constant currency % change3 |
Like for like % change4 |
|
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|
|
|
|
|
|
Revenue2 |
£385.4m |
£378.2m |
1.9% |
3.3% |
3.3% |
|
Adjusted operating profit |
£37.5m |
£41.8m |
(10.3%) |
(9.2%) |
(9.2%) |
|
Adjusted profit before tax |
£34.0m |
£40.2m |
(15.4%) |
(14.1%) |
(14.1%) |
|
Adjusted basic earnings per share |
5.76p |
6.50p |
(11.4%) |
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|
|
|
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|
|
Statutory results (after exceptional items1) |
|
|
|
|
|
|
Revenue2 |
£385.4m |
£378.2m |
1.9% |
|
|
|
Operating profit |
£37.7m |
£26.5m |
42.3% |
|
|
|
Profit before tax |
£34.2m |
£24.9m |
37.3% |
|
|
|
Basic earnings per share |
5.04p |
4.59p |
9.8% |
|
|
|
Interim dividend per share |
2.67p |
2.67p |
– |
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|
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Net debt5 |
(£191.2m) |
(£191.3m) |
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HIGHLIGHTS
Group
· Revenue 1.9% ahead of the prior period with performance underpinned by a strong and innovative product pipeline
· Adjusted operating profit 10.3% lower with strong profitability in Asia offset by reduced margins in some business units in Europe and Africa
· Profitability expected to improve in second half as a result of further new product launches and distribution expansion
· Strong balance sheet with net debt at 1.5 x EBITDA6
· Interim dividend maintained at 2.67p per share
Africa
· Robust performance in Nigeria in Personal Care, Home Care and in the PZ Wilmar joint venture
· Profitability significantly impacted in Nutricima milk business by competitor pricing and in Electricals by reduced consumer discretionary spend
· Second half performance expected to improve as business enters peak season
Asia
· Strong growth in profitability in Australia across all categories of Personal Care, Home Care and Food & Nutrition
· Performance in Indonesia strong across all brands of Cussons Baby, Cussons Kids and Imperial Leather
Europe
· Tough trading conditions in UK washing and bathing division in first half with further brand initiatives planned for second half to improve performance
· Solid performance in Beauty division across Sanctuary, St Tropez, Fudge and Charles Worthington
1 Exceptional items before tax (2017: income £0.2m; 2016: costs £15.3m) are detailed in note 4.
2 Excludes joint ventures revenue of £74.7m (2016: £85.6m).
3 Constant currency comparison (2016 results retranslated at 2017 exchange rates). See page 2 for values of currency impact.
4 Like for like comparison after adjusting 2016 for constant currency and 2017 for the impact of acquisitions and disposals. There were no such acquisitions or disposals in either period.
5 Net debt, above and hereafter, is defined as cash, short-term deposits and current asset investments, less bank overdrafts and borrowings (refer to note 11).
6 EBITDA (as used in this ratio calculation) is defined as statutory operating profit before charges for depreciation and amortisation for the 12 months prior to the reporting date. In this case 12 months to 30 November 2017.
Commenting today, Caroline Silver (Chair) said:
“In the first half of the financial year, the Group has faced tough trading conditions in many of the markets in which it operates, and whilst revenue was 1.9% higher than the previous period, adjusted operating profit was 10.3% lower as a result of reduced margins in certain business units in Europe and Africa.
Initiatives are underway to improve performance of these business units and, together with the positive momentum elsewhere in the Group and in particular in Asia, provide a solid basis for improved performance in the second half of the year.
The Board has maintained the interim dividend at 2.67p per share.
The Group's brand portfolio remains strong and, with a strong balance sheet, the Group is well placed to pursue growth opportunities.”