PZ Cussons backs FY expectations as Q3 revenues rise

Imperial Leather maker PZ Cussons backed its full-year expectations on Thursday as it posted a rise in third-quarter revenues as price increases underpinned margins.

In the quarter to 4 March, like-for-like revenues grew 6.2% to £166m, marking the sixth consecutive quarter of revenue growth. Cussons said this was driven mainly by price/mix improvements.

Cussons said Europe & the Americas were back to strong revenue growth, up 9.9% on a LFL basis to £49.3m, and with "significantly improved" margin. It hailed "particularly strong" performances from St. Tropez US and the combined Imperial Leather and Cussons Creations portfolio.

Meanwhile, Asia Pacific LFL revenues grew 1% to £47.6m, driven by strong growth in Australia.

Africa saw a 7.7% jump in LFL revenues to £68.4m. Cussons said strong trading in December and January was partly offset by disrupted demand in Nigeria in February due to bank note changes and the elections.

Cussons said it expects FY23 adjusted pre-tax profit to be "at least in line" with current market estimates of £68.1m.

Chief executive Jonathan Myers said: "We have delivered another quarter of mid-single digit revenue growth, in line with our longer-term ambition. This represents a sixth consecutive quarter of growth, with the business underpinned by the strength and depth of our portfolio and our ongoing strategy to invest behind our brands, build internal capabilities and serve consumers better.

"As anticipated, performance has strengthened in Europe & the Americas, with a return to revenue growth and a marked improvement in profitability in the quarter. As a result, we remain confident in delivering against FY23 expectations and that further strategic progress will be made in the balance of FY23 and into FY24."