Interim Management Statement

RNS Number : 8028O

PZ CUSSONS PLC

25 September 2013

 



25 September 2013

PZ Cussons Plc

(the "Group")

Interim Management Statement

PZ Cussons Plc, a leading international consumer products group, today issues the following interim management statement which covers the period 1 June 2013 to 24 September 2013, in advance of its Annual General Meeting, to be held at 10:30 today.

Overview of financial performance and position

The board is pleased to announce that the performance of the Group during the period has been in line with management expectations. The financial position of the Group remains strong with cash generation during the period also in line with management expectations.

Trading Update

Europe

In the UK, trading in the washing and bathing division has been robust with new product launches proving successful. During the quarter, Imperial Leather has been relaunched with new imagery including a new fragrance selection across its premium Foamburst shower range. Cussons Mum & Me, the range of products for mothers and babies, has been extended with a new range of products for young children under the 'Little Explorers' sub-brand.

In the beauty division, all four brands have performed well with St Tropez being boosted by the appointment of Kate Moss as brand ambassador at the start of the summer.  Further new product launches for both UK and International markets are planned during the remainder of the calendar year.

In Poland, performance has been strong both in Home Care and Personal Care. Merger control clearance for the sale of the Home Care brands is anticipated shortly. Trading in Greece has been at similar levels to the prior year.

Asia

The positive momentum in Indonesia has continued across the babycare and non-babycare ranges, although further weakening of the rupiah is impacting results.

Similarly in Australia, whilst performance in Home Care and Personal Care has been robust, the weakening of the Australian dollar is also impacting results. 

Rafferty's Garden, the Australian baby food business purchased in early July, is performing well and in line with management expectations. Plans for international expansion of the brand are already being developed.

Africa

In Nigeria, despite unrest continuing in the north, the positive growth momentum seen in the second half of last year has continued into the first quarter which is traditionally low season in the country. New product launches are also planned over the coming months across all categories.

The palm oil refinery, constructed as part of the joint venture with Wilmar, continues to increase production levels on a monthly basis. A new consumer brand, Mamador, was launched during the quarter with products in multiple sizes and formats.

Directors

Simon Heale, who has served on the board as a non-executive director since January 2008, has indicated his intention to retire with effect from the expiry of his current three year term of office on 31 December 2013. The board thanks him for the significant contribution which he has made to the business over the past six years.

Outlook

Whilst the trading environment in most markets remains challenging, brand renovation and innovation is driving organic growth across the Group, enhanced by the acquisition of Rafferty's Garden.

Margin improvement projects also continue in all markets whilst raw material costs remain broadly flat.

A further trading update will be made on 11 December 2013.

Enquiries:

PZ Cussons Plc

Brandon Leigh                                                  Tel: [phone]

College Hill

Toby Bates / Tim Linacre                                  Tel: [phone]

 

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