PZ Cussons PLC on Tuesday said annual profit declined despite a jump in revenue, and the consumer goods company added that it expects to meet market expectations for the new year.

PZ Cussons, which specialises in hygiene, beauty and baby products, said pretax profit for the year ended May 31 fell 4.2% to £61.8 million, from £64.5 million the year before.

Adjusted to exclude items such as supply chain, finance and HR transformation costs, profit increased 13% to £74.1 million from £65.8 million, in part due to ‘continued profitable revenue growth’ in Nigeria.

Adjusting items also included a £16.5 million impairment charge at its Sanctuary Spa brand.

Operating profit fell 9.3% to £59.7 million from £65.8 million, while adjusted operating profit grew 9.2% to £73.3 million from £67.1 million.

Revenue rose 11% to £656.3 million from £592.8 million. PZ Cussons also reported its third consecutive year of like-for-like revenue growth. Like-for-like revenue rose 6.9%, picking up speed from 2.1% growth.

The cost of sales increased 9.2% to £399.0 million. Selling and distribution costs increased 17% to £105.3 million, and administrative expenses increased 28% to £99.8 million.

‘We have achieved these improvements by investing in our brands and capabilities, serving cost-conscious consumers better with targeted innovation and productivity initiatives helping us to reduce complexity across the group,’ commented Chief Executive Officer Jonathan Myers

PZ Cussons also declared a final dividend of 3.73 pence per share, unchanged from the previous year. It said this was to reflect the devaluation of the naira, the official currency of Nigeria, where the firm said the macroeconomic environment ‘will be a key determinant of our overall group FY24 financial results’.

Its total dividend was maintained at 6.40p per share.

Regardless, PZ Cussons expects to deliver a fourth year of LFL revenue growth in the year ending May 31, 2024, as well as adjusted operating profit within the range of current market expectations. Current consensus anticipates between £61.5 million and £68.2 million.

‘There is more to do as we seek to maximise the company’s full potential, and there are well-documented challenges to be navigated in Nigeria,’ said Myers. ‘However, we continue to believe that we can build a higher growth, higher margin, simpler and more sustainable business.’

PZ Cussons shares were flat at 160.00 pence in London on Tuesday morning.

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