PZ Cussons Sees Revenue Surge Amid Higher Prices and Festive Sales
The Manchester-based consumer goods manufacturer PZ Cussons has announced a significant boost in sales, attributing the growth to elevated pricing strategies and a record-breaking Christmas gifting season. Despite ongoing struggles with its St Tropez self-tanning brand, the company, known for labels such as Imperial Leather and Carex, reported revenue increases across each of its ten largest brands.
Financial Performance and Regional Insights
Total revenues for PZ Cussons rose by 9.5% in the six-month period ending November 29, compared on a like-for-like basis with the same timeframe the previous year. In Europe and the Americas, revenues experienced a modest growth of 1.7%, primarily driven by higher prices, although sales volumes saw a slight decline. The UK market remains intensely competitive, with the company noting a bifurcation of demand as consumers increasingly seek value while others continue to spend on everyday luxuries.
Brand-Specific Successes and Challenges
Sanctuary Spa emerged as a key growth driver in the region, with sales expanding by double digits, fueled by a record high in Christmas gifting and expanded product availability in retail outlets. The shower gel brand Original Source also saw a surge following an advertising campaign, and the baby and kids skincare label Childs Farm benefited from partnerships with Kellogg's and the animated TV series Bluey.
However, these gains were partially offset by a significant downturn for the St Tropez brand, which experienced a 30% decline in global sales, excluding the US, over the half-year. PZ Cussons had previously abandoned efforts to sell St Tropez and is now implementing a turnaround strategy under new leadership.
African Market Expansion and Profit Outlook
In Africa, sales soared by approximately 28%, driven by a 15% increase in prices and a 13% rise in sales volume. The company is leading an overhaul of this division after also scrapping plans for its sale. Pre-tax profit for PZ Cussons surged by more than 50% year-on-year, reaching nearly £30 million.
Looking ahead to the full fiscal year, the firm anticipates adjusted operating profits to be between £53 million and £57 million, up from the previous range of £50 million to £55 million. Chief executive Jonathan Myers commented, We have delivered a strong performance in the first half of the year across our four lead markets. This performance, with a healthy balance of price and volume increases, and growth in each of our largest 10 brands, has been driven by targeted investment in innovation, brand-building and continued strong commercial execution.
