10th Apr 2014 09:46
LONDON (Alliance News) - Consumer products company PZ Cussons PLC Thursday said it has been trading in line with management expectations over the past few months, boosted by its personal care brands in Europe.
The company, which owns brands including brands including Imperial Leather and Original Source, said its performance for the full year continues to be in line with expectations, despite challenging trading conditions in many of its markets.
"Trading conditions in most markets remain challenging with a competitive trade environment in developed markets and weakening currencies adding to the cost base of both consumers and businesses in emerging markets. Some raw material input costs have also shown an upward trend," the company said in a statement.
For the trading period January 22 to April 9, the company said that within its European division, its UK washing and bathing division saw strong sales growth from its brands Imperial Leather, Carex and Original Source.
It said consumer demand for St Tropez tanning products in its beauty division continues to be boosted by the appointment of Kate Moss as brand ambassador last year. It also said that its other three brands - Sanctuary Spa, Charles Worthington and Fudge - also performed well in the UK, and a new overseas distribution will begin before the end of the financial year.
The company said its performance in Greece continues to show signs of improvement, as the economy begins to stabilise.
PZ Cussons said its Asia business is still taking a hit due to a significant weakening in exchange rates in Australia, though it said its core brands in Australia performed well during the period. Its babycare and non-babycare portfolios benefited from further distribution in other South East Asian territories.
In Africa, the group said trading during the period continued to be hit by unrest in northern Nigeria, while profitability in Ghana was hit by the significant weakening in the cedi. Kenya performed well, with trading in line with expectations.
The group said its financial position remains strong, with cash generation during the period also meeting expectations.
PZ Cussons said it will focus its attention on its ongoing cost reduction programme, and on new areas of growth. These include its palm oil joint venture with Wilmar and its Rafferty's Garden baby food brand. Rafferty's Garden will see a number new product launches, the company said, and international expansion will begin before the end of the financial year.
"These initiatives will help counter the ongoing macro challenges and the reduction in profits from Poland as a result of the homecare sale," the company said.
During the quarter, the group completed the sale of its home care brands in Poland to Germany's Henkel for GBP46.6 million in cash.
PZ Cussons shares were up 1.2% Thursday morning at 357.97 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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