26th Jun 2025 10:12
(Alliance News) - PZ Cussons PLC on Thursday said it will take an impairment in the value of its St Tropez tanning lotion brand, after an auction process failed to achieve a sale despite "a number of offers being received".
Manchester, England-based PZ Cussons owns a range of hygiene, baby and beauty brands, including also Carex and Imperial Leather.
It said the auction of the St Tropex brand took place against the difficult backdrop of a revenue decline in the US and a contraction of valuation multiples across the wider beauty products sector.
As a result of the failed auction, PZ Cussons said it will retain St Tropex with a dedicated business development team. It also has agreed a partnership for the brand with Emerson Group in the US. St Tropex will be integrated into Emerson's sales team, which targets key US retailers.
"The board is confident that this partnership will return St Tropez to growth in the US, combining Emerson's distribution reach and brand activation capabilities, with the brand equity of St Tropez," PZ Cussons said.
However, "reflecting the recent performance of St Tropez", the company will take a non-cash impairment against its financial 2025 results, which will be released in September.
PZ Cussons didn't provide the amount of the impairment, but noted that St Tropez contributed GBP7.5 million in adjusted operating profit in financial 2025, which ended on May 31.
The carrying value of St Tropez in PZ Cussons's financial 2024 results was GBP58.4 million, the same as in financial 2023.
PZ Cussons shares were down 3.6% to 73.56 pence on Thursday morning in London. The stock is down 27% over the past 12 months.
By Tom Waite, Alliance News editor
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