HIGHLIGHTS
Group
Operating profit growth of 13% driven in particular by improved performance in Australia and a robust performance in UK
Revenue flat comprising growth in Europe and Asia, offset by decline in Africa as a result of tough trading conditions, particularly in Nigeria
Strong balance sheet with only small net debt position at period end
· Interim dividend raised 5.4% to 2.35p per share reflecting confidence in the future
Africa
· Revenue and profits slightly lower in Nigeria as a result of impact of social unrest in the north, flooding in a number of states and impact from fuel duty subsidy reduction earlier in the year
· Construction of the palm oil refinery in Nigeria now complete with commissioning underway
Asia
· Continued positive momentum in Indonesia with revenue from the market leading Cussons Baby range ahead of the prior period
· A return to profitability in Australia with business improvement measures now successfully implemented
Europe
· Robust performance in UK Washing and Bathing division across Imperial Leather, Carex and Original Source
· Significant investment in launch of Cussons Mum & Me with encouraging early rates of sale
· Beauty division revenue and profitability ahead of the prior period with continued growth of Sanctuary and newly acquired Fudge hair-care brand performing well
· Strong performance in Poland, whilst conditions in Greece resulted in lower profitability
Commenting today, Richard Harvey (Chairman) said:
"Following a tough year last year, the Group has responded quickly and effectively to deliver a 13% increase in operating profits. Our performance in the UK has been particularly robust, and the Australian business has been returned to profit.
Our focus continues to be on innovation and brand development, as illustrated by the successful launch of the new brand Cussons Mum & Me into the UK marketplace. At the same time our supply chain optimisation project is ensuring that our cost base is being further reduced.
Construction of the palm oil refinery in Nigeria with our partner Wilmar has recently been completed and this exciting new venture will begin to operate in the second half.
Our balance sheet remains strong and we have the appetite to pursue further investment opportunities which fit our strategic aims.
I would like to take this opportunity to thank John Pantelireis, Group Supply Chain Director, who retires at the end of March this year, for the fantastic contribution he has made during his 32 years service to the Group.
Our overall performance since the period end has been in line with expectations. Whilst trading conditions in most markets are challenging we remain confident of a return to profitable growth for the full year, with the range of potential outcomes being largely dependent on trading in our largest market Nigeria during its peak season over the coming months."
Africa
Revenue and profits slightly lower in Nigeria as a result of impact of social unrest in the north, flooding in a number of states and impact from fuel duty subsidy reduction earlier in the year
Construction of the palm oil refinery in Nigeria now complete with commissioning underway
Asia
Continued positive momentum in Indonesia with revenue from the market leading Cussons Baby range ahead of the prior period
A return to profitability in Australia with business improvement measures now successfully implemented
Europe
Robust performance in UK Washing and Bathing division across Imperial Leather, Carex and Original Source
Significant investment in launch of Cussons Mum & Me with encouraging early rates of sale
Beauty division revenue and profitability ahead of the prior period with continued growth of Sanctuary and newly acquired Fudge hair-care brand performing well
Strong performance in Poland, whilst conditions in Greece resulted in lower profitability
Commenting today, Richard Harvey (Chairman) said:
"Following a tough year last year, the Group has responded quickly and effectively to deliver a 13% increase in operating profits. Our performance in the UK has been particularly robust, and the Australian business has been returned to profit.
Our focus continues to be on innovation and brand development, as illustrated by the successful launch of the new brand Cussons Mum & Me into the UK marketplace. At the same time our supply chain optimisation project is ensuring that our cost base is being further reduced.
Construction of the palm oil refinery in Nigeria with our partner Wilmar has recently been completed and this exciting new venture will begin to operate in the second half.
Our balance sheet remains strong and we have the appetite to pursue further investment opportunities which fit our strategic aims.
I would like to take this opportunity to thank John Pantelireis, Group Supply Chain Director, who retires at the end of March this year, for the fantastic contribution he has made during his 32 years service to the Group.
Our overall performance since the period end has been in line with expectations. Whilst trading conditions in most markets are challenging we remain confident of a return to profitable growth for the full year, with the range of potential outcomes being largely dependent on trading in our largest market Nigeria during its peak season over the coming months."
