PZ CUSSONS PLC Trading Statement (7963Z)
23 Septiembre 2020 - 01:00AM
UK Regulatory
TIDMPZC
RNS Number : 7963Z
PZ CUSSONS PLC
23 September 2020
23(rd) September 2020
Trading update
PZ Cussons Plc ("PZ Cussons" or the "Group") today issues the
following trading update in respect of the first quarter ended
August 31(st) 2020.
Good start with revenue growth but volatility ahead
-- Q1 Revenue growth of 23% with Focus Brands growth of 37% at constant rates of exchange
-- Driven by top line focused interventions and strong demand for hygiene brands
-- Continued excellent performance in the UK and Indonesia
-- Recovery of results in Australia, Nigeria and Beauty
-- Balance sheet further strengthened with net debt lower than year-end
-- In Nigeria, the disposal of our Nutricima milk business is on
track with expected completion by end of September
-- Reviewing our strategy for sustainable growth as a leading branded consumer goods business
Jonathan Myers, Chief Executive Officer commented:
The first quarter results have given us a good start to the year
with growth in all three regions and an improvement in
profitability. The majority of our Focus Brands are now in growth,
led by Carex in the UK. In the second quarter we plan to increase
investment further in building our brands and capabilities. We are
currently in a process to examine and evolve our strategy to
deliver sustainable top line growth and improved operating
margin.
The operating landscape remains highly volatile with many of the
economies we operate in moving into recession, the continuing
uncertainty of the COVID-19 pandemic and categories remaining
highly competitive with pressure on discounting and cost. While it
remains very difficult to forecast and give guidance we expect some
adverse headwinds for the rest of the year following this good
start.
We continue to take the appropriate steps to safeguard our
employees with their health and wellbeing remaining of paramount
importance to us. Finally we continue to secure the business for
the future and both the work on strategy and focus on liquidity
reflects this.
Trading update
GBPm Growth versus Growth versus
last year (Reported) last year (Constant
fx)
Europe & Americas 61.5 +49% +49%
------ ---------------------- ---------------------
Asia Pacific 48.9 +6% +9%
------ ---------------------- ---------------------
Africa 47.7 +4% +13%
------ ---------------------- ---------------------
Group 158.1 +19% +23%
------ ---------------------- ---------------------
Europe and Americas delivered strong revenue growth in Q1 driven
by results in our Personal Care category and recovery in Beauty.
Carex remains the driver with market share in UK hand wash
increasing to circa 40% in hand wash and clear leadership of the
growing hand sanitizer market in the UK. Original Source and
Imperial leather both saw revenue decline in the quarter compared
to last year and we will look to strengthen our plans for these
brands in this financial year.
Beauty continues to recover with revenue modestly ahead of last
year for the first quarter driven by a stronger on-line performance
which now accounts for around 36% of our business with both ST
Tropez and Sanctuary delivering good revenue growth.
Asia Pacific grew revenue in both Australia and Indonesia in the
first quarter. Indonesia continues to deliver good performance with
Cussons Baby despite lower footfall in modern trade as well as
wider economic issues. In Australia Morning Fresh achieved record
market share and together with Radiant performed strongly in the
quarter. Rafferty's Garden stabilised in the first quarter.
Africa grew revenue compared to last year with Nigeria returning
to more normal trading patterns following the removal of
restrictions as a result of COVID-19. Premier grew revenue in the
first quarter supported by recent relaunches, Morning Fresh
continued to deliver strong results and Cussons Baby returned to
growth. The region returned to profit in the first quarter despite
the continuing adverse economic situation and an increase in input
costs driven by the scarcity of foreign currency.
Liquidity remains strong for the Group and net debt further
reduced compared to the year-end.
COVID-19 Update
Our employees' health and wellbeing remains a key focus for us
during this pandemic. Our manufacturing sites have all remained
open and operational since the outbreak and together with our teams
working from home reflects the fantastic commitment throughout the
business. We continue to take very seriously our role in the wider
society supporting those most at need through programmes in all our
markets.
The environment continues to remain volatile in our markets with
adverse economic headwinds in the UK, Nigeria, Australia and
Indonesia. Our Personal and Home Care brands have been energised
and refocused by the opportunities in hygiene-related categories
but competition remains strong in addition to COVID-19 related risk
of volatility in our supply chain.
Outlook
COVID-19 and its aftermath in terms of both economic factors and
consumer confidence will clearly continue to have a significant
impact on the consumption of our Personal Care, Home Care and
Beauty products.
Despite the renewed momentum of our business in the first
quarter we expect volatility and risk to continue as well as
increased investment in our brands and capabilities as we prepare
for a multi-year turnaround of the business, starting with a
comprehensive review of our strategy.
- Ends -
Press enquiries:
PZ Cussons - Alan Bergin (Interim Chief Financial Officer) 0161
435 1236
Instinctif - Tim Linacre / Guy Scarborough 020 7457 2020
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