PZ Cussons swings to first-half profit, shares rally

(Sharecast News) - PZ Cussons rallied on Tuesday after the Imperial Leather maker said it had returned to profit in the first half and remains on track to meet full-year expectations. In results for the six months to 30 November 2024, the company said it swung to a statutory pre-tax profit of £6.4m from a loss of £94.2m in the same period a year earlier. On an adjusted basis, pre-tax profit fell to £19.8m from £26.1m.

Revenue declined 10% to £249.3m, mainly due to the 55% devaluation of the Nigerian Naira versus sterling.

Chief executive Jonathan Myers said: "Trading has been in line with expectations during the first half of our financial year and, together, three of our priority markets - the UK, Indonesia and ANZ - have delivered solid overall like for like revenue growth of 2%.

"New product innovation, competitive brand activation and increased retail distribution have combined to deliver the strongest performance in our UK business for three years, thanks in part to particularly successful Christmas sales for Sanctuary Spa gifting.

"Indonesia recorded a third consecutive quarter of growth and in ANZ our brands have continued to grow share, albeit against a backdrop of market softness."

At 0915 GMT, the shares were up 7.4% at 85.30p.

Russ Mould, investment director at AJ Bell, said: "Imperial Leather maker PZ Cussons' latest numbers may not have a clean bill of health but there were enough positive areas to impress the market. A beaten down share price also meant investors were of a mind to give the company the benefit of the doubt.

"PZ Cussons has been beset by challenges relating to its Nigerian business and the devaluation of the country's naira currency. A stabilised situation and a strong showing in other geographies gave shareholders some hope the worst of its problems are behind it."