Imperial Leather maker PZ Cussons swings to profit

(Sharecast News) - PZ Cussons shares shot higher on Wednesday as the Imperial Leather maker struck an upbeat note on its outlook and said it swung to a full-year statutory pre-tax profit. In the year to the end of May, Cussons swung to a statutory pre-tax profit of £6.5m from a loss of £95.9m the year before.

On an adjusted basis, pre-tax profit fell to £41.1m from £44.7m, while operating profit declined 5.8% to £54.9m.

Revenue was 2.7% lower at £513.8m on a reported basis due to foreign exchange movements, but 8% higher on a like-for-like basis, driven by pricing in Africa and strong brand activity in the UK and Indonesia.

Cussons said trading in FY26 has been in line with its expectations, with group LFL revenue growth to the end of September expected to be 10%, driven by 39% growth in Africa and 7% in APAC.

The company said this has been partly offset by Europe and the Americas, where revenue is expected to fall 2% "reflecting strong comparatives and challenging trading in St.Tropez". It added that the region is expected to be in growth in the first half.

Chief executive Jonathan Myers said: "FY25 has been a year of continued progress against our strategy. We have delivered good momentum across most of our portfolio, driven by our renewed focus on more competitive brand activation, strengthened innovation and successful commercial partnerships.

"At the same time, we have taken action to address our cost base, as we embed our new operating model. The UK saw a stronger profit performance, while Indonesia has seen its fifth consecutive quarter of revenue growth, and we continued to gain share in ANZ.

"We are also delivering on the plan to simplify and transform our business. In June we announced the sale of our 50% stake in PZ Wilmar, for $70 million, materially strengthening our financial position. We also took the decision to retain St.Tropez, to create more value through a new strategic direction and operating model. We continue to review the future of our wider African business.

"We know there is more to do to fully transform PZ Cussons into a business with stronger brands in a more focused portfolio, delivering sustainable, profitable growth. With the strategic actions and operational improvements delivered through 2025, we are confident in the long-term potential for PZ Cussons."

At 0950 BST, the shares were up 10.7% at 73.39p.