South Manchester based PZ Cussons, manufacturer and distributor of such well-known brands as Imperial Leather to Cussons Baby, Morning Fresh to St. Tropez, have announced an operating profit growth of 7% despite the impact of weakening currencies in their annual accounts to May 2104.
Excluding the impact of exchange rates, operating profit would have been 18% higher than prior year; revenue growth in constant currency was 2% on prior year and in addition JV revenue increasing by £172m.
The group, who operate in five core categories – personal care, beauty, home care, food and nutrition and electricals and employ over 6500 people across Africa, Europe, Asia, and North America, also acquired Rafferty’s Garden early in the year for £42.2m at the same time disposing of Polish Home Care brands for £46.6m.
Left: a selection of PZ brands
Africa and Asia both achieved operating profit growth while the acquisition of Rafferty’s Garden marked the Group’s entry into Food and Nutrition in Asia; Europe delivered a strong performance across all four UK Washing and Bathing brands and popular self-tanning brand St Tropez continues to be boosted by Kate Moss as brand ambassador.
Commenting Richard Harvey (Chairman) said:
“The Group has delivered a strong set of results with Sterling operating profits 7% ahead of the prior year. This has been achieved despite a significant weakening in currencies which impacted profits by circa £12m and without which profits would have been 18% higher on prior year.
“It has been particularly pleasing to see the progress of the palm oil joint venture with Wilmar with the brands Mamador and Devon King’s performing well and the refinery operating close to capacity in its first full year of operation.
“During the year we acquired Rafferty’s Garden and sold our Polish Home Care brands as we continue to seek to focus the business on areas we perceive have particularly high growth potential and where we can add substantial value. The acquisition of Rafferty’s Garden marked our entry into the Asian Food and Nutrition category, a sector we believe is particularly exciting and where we are developing plans for further growth. Having disposed of the Polish Home Care brands we are now focussing on the Personal Care and Beauty business in that region.
“Our balance sheet remains strong and we have the appetite to pursue further investment opportunities which fit our strategic aims.”
Our overall performance since the year end has been in line with management expectations.”