- Underlying sales growth improved in fourth quarter
- Chief executive confirms current-year earnings guidance
- Firm 'mitigating' cost of living crisis with value range
Consumer goods firm PZ Cussons (PZC) delivered a pleasing fourth quarter trading update confirming its return to like-for-like sales growth.
The firm said it saw ‘good revenue momentum’ in its Must Win Brands as supply chain pressures eased and its marketing struck the right note with consumers.
The shares gained 1.3% to 200p in mid-morning trading, helped by a rally in the broader market.
PRICING POWER
The Manchester-based maker of personal care brands such as Carex and Imperial Leather said it expected to post full year revenues of £590 million, in line with estimates.
Like-for-like growth during the year was 3%, accelerating to 7% in the final quarter to the end of May, with the firm citing price increases and product mix for the gains with ‘limited’ impact on volumes.
Must Win brands showed 4% growth in the final quarter thanks to more focused marketing and a ‘normalising’ of the supply chain challenges in faced in the US beauty market.
The firm also noted Carex sales declined at ‘a significantly lower rate’ than in previous quarters as demand for hand hygiene products in the UK normalised.
Award-winning UK sustainable skincare brand Childs Farm, which was acquired in March just before the year-end, has performed as hoped, and the company plans to develop the brand further.
POSITIVE OUTLOOK
Chief executive Jonathan Myers confirmed the group’s profit expectations for the current financial year on the back of the ‘significant progress made in returning the business to sustainable, profitable revenue growth’.
‘With a new team in place, we have re-focused on the core job of building brands and have started to unlock value through dramatically reducing complexity in our business, said Myers.
While acknowledging the twin challenges of rising input prices and the pressure on household budgets, Myers said plans were in place to mitigate the impact and continue delivering value for shoppers.
The Cussons Creations brand, introduced for value-conscious consumers, and the relaunch of Sanctuary Spa and Imperial have gone down well with customers and allowed the firm to secure ‘significant distribution gains’ into the bargain.
