TIDMPZC
RNS Number : 5280M
PZ CUSSONS PLC
22 September 2021
22 September 2021
Returning to growth and continued strategic progress
PZ Cussons plc ("PZ Cussons" or the "Group") today issues the
following trading update in respect of its first quarter of the new
financial year to 31 May 2022, ended 28 August 2021.
Performance Highlights
-- As expected, unprecedented demand for our Hygiene brands at
the beginning of the Covid-19 pandemic impacted year-on-year
revenue comparisons in the first quarter of FY22.
-- Two-year Q1 revenue (1) grew +13%, with growth across each of
our core categories of Hygiene, Baby and Beauty and in all
geographic regions. Must Win Brands were up +23%.
-- One-year Q1 revenue (1) declined -9%, driven by Hygiene. The
Baby and Beauty categories showed strong price / mix improvement,
with Hygiene held back by unusually low levels of promotional
discounting on Carex in the prior year.
-- Total business performance improved as the quarter progressed
and we returned to growth in August. Assuming no further
disruption, we expect to return to growth for Q2.
-- Must Win Brands declined -20% versus the prior year.
Excluding Carex, revenue grew +4%.
- The decline was entirely driven by our Hygiene category, with
Carex in the UK experiencing double-digit decline. The UK washing
& bathing category has shown encouraging momentum as we emerge
from Covid-19 restrictions. Carex is the clear market leader in
hand hygiene, with revenue up over 40% versus two years ago.
- Sales of Baby products were flat. Covid-19 restrictions in
Indonesia weighed more heavily than expected but are starting to
moderate.
- Beauty grew double-digit, including our hair brands recovering from social restrictions.
-- Net debt reduced further in the first quarter of the new
financial year, down to GBP23m, due in part to the proceeds from
the five:am disposal, further narrowing our Food & Nutrition
portfolio.
-- Despite the significant inflationary pressure on our cost
base, assuming no further cost headwinds or global supply or other
Covid-related disruption, we expect to deliver FY22 adjusted profit
before tax within the current range of expectations.
Delivering our new strategy: Building brands for life. Today and
for future generations
-- Q1 marketing investment increased over 20%, with the majority
of the spend on Must Win Brands.
-- As input cost pressures increase, we have successfully
executed price increases across our brand portfolios in Nigeria and
Indonesia. In our developed markets, in addition to more targeted
price increases, our Revenue Growth Management focus has been to
drive brand equity improvements and efficient levels of price
promotion to enable further price / mix improvements.
-- Simplification of our Nigerian business, including halving
our supplier base and consolidating our distribution centres.
-- Continued progress developing capabilities and evolving our
culture. Building on improved employee engagement scores we have
launched a new company purpose, appointed new senior leaders and
started a transformation programme to upgrade our people processes
and systems.
Jonathan Myers, Chief Executive Officer, commented:
"The medium-term outlook remains in line with our expectations
and we have confidence that our brand and market portfolio will
emerge strongly once we cycle through the unprecedented demand for
hygiene products at the start of the pandemic.
We continue to navigate the well-publicised inflationary
pressures on commodities and freight. We have a co-ordinated effort
underway to reduce product, manufacturing and logistics costs that
the consumer does not value while also accelerating our Revenue
Growth Management plans to drive price / mix. Combined with
sustained and more effective marketing investment, stronger brand
plans and new product innovation, these interventions mean that,
assuming no further disruptions, we expect to return to growth for
Q2 and to deliver low to mid single-digit revenue growth for the
year, in line with our strategic financial framework we outlined at
the Capital Markets Day in March. Despite the significant
inflationary pressure on our cost base, assuming no further cost
headwinds or global supply or other Covid-related disruption, we
expect to deliver FY22 adjusted profit before tax within the
current range of expectations."
Quarter 1 Revenue (GBPm) Two-year growth One-year growth
(1) (1)
Europe & Americas 42.4 +7% (28%)
--------------- ---------------- ----------------
Asia Pacific 40.4 +3% (5%)
--------------- ---------------- ----------------
Africa 47.5 +31% +15%
--------------- ---------------- ----------------
Central 1.1 (24%) (51%)
--------------- ---------------- ----------------
Group 131.4 +13% (9%)
--------------- ---------------- ----------------
(1) Revenue growth is quoted on a like-for-like organic basis,
after the impact of acquired and disposed of brands or businesses,
and at constant currency. Two-year growth rates included due to the
short-term distorting effect of Covid-19.
Notes to editors
Figures are unaudited, and not subject to review by the Group's
auditors
Cautionary note regarding forward-looking statements
This announcement contains certain forward-looking statements
relating to expected or anticipated results, performance or events.
Such statements are subject to normal risks associated with the
uncertainties in our business, supply chain and consumer demand
along with risks associated with macro-economic, political and
social factors in the markets in which we operate. Whilst we
believe that the expectations reflected herein are reasonable based
on the information we have as at the date of this announcement,
actual outcomes may vary significantly owing to factors outside the
control of the Group, such as cost of materials or demand for our
products, or within our control such as our investment decisions,
allocation of resources or changes to our plans or strategy. The
Group expressly disclaims any obligation to revise forward-looking
statements made in this or other announcements to reflect changes
in our expectations or circumstances. No reliance may be placed on
the forward-looking statements contained within this
announcement.
For further enquiries, please contact
Investors Sarah Pollard, PZ Cussons plc - Chief Financial
Officer 0161 435 1000
Media Tim Linacre / Guy Scarborough / Bryn Woodward - Instinctif 020 7457 2020
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTUAAURAKUKUUR
(END) Dow Jones Newswires
September 22, 2021 02:00 ET (06:00 GMT)
Pz Cussons (LSE:PZC)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Pz Cussons (LSE:PZC)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024