PZ Cussons final results 2011/12 - dividend announced

PZ Cussons Plc, a leading international consumer products group, announces its preliminary results for the year ended 31 May 2012.

¹ Exceptional items, totalling £43.8m before tax, are detailed in note 2.

² Net (debt)/funds, above and hereafter, is defined as cash, short-term deposits and current asset investments less borrowings (refer to note 9).

Highlights

Group

• Revenue growth of 4.7% despite challenging trading conditions during the year, particularly in Nigeria and Australia
• Profits impacted, as previously advised, by high raw material costs; a worsening trading environment in the Australian homecare category; and the social and economic tensions in Nigeria
• Major launch in the UK, post period end, of Cussons Mum & Me, a new brand of personal care products specifically designed for mothers and babies
• Extension of the Beauty division portfolio with the acquisition of the Fudge hair-care brand in January 2012
• Supply chain optimisation project underway to significantly reduce the overhead footprint of the Group's manufacturing activities
• Healthy balance sheet with only a small net debt position at the end of the year
• Total dividend increased 1.6% year on year reflecting the strong balance sheet and the Board's confidence in the future

Africa

• Overall increase in revenue of 6.8% reflecting a strong first half but a second half affected by the social unrest in the north of Nigeria and the impact from the fuel duty subsidy reduction
• Profits lower as a result of the above as well as higher raw material costs
• Construction of the palm oil refinery with Wilmar on track for completion by the end of the calendar year

Asia

• Continued positive momentum in Indonesia, with revenue and profit from the market leading Cussons Baby range ahead of the prior year
• Overall Asian revenue and profits lower due to the challenging trading conditions in the Australian homecare category

Europe

• Robust performance in the UK Washing and Bathing division driven by brand innovation and renovation despite competitive trading conditions 
• Strong performance in the Beauty division with significant new product launches across the portfolio of Sanctuary, St Tropez, Charles Worthington and Fudge
• Strong trading in Poland across both homecare and personal wash

Commenting today, Richard Harvey (Chairman) said:

"The Group delivered revenue growth despite challenging trading conditions. Profits were lower with a robust performance in the UK, strong trading in the Beauty division and positive momentum in Indonesia, more than offset by specific market challenges in Nigeria and Australia, and the impact of the largest year-on-year increase in raw material costs we have experienced.

Despite the external challenges, the Group remains committed to driving profitable growth through brand renovation and innovation, and through further cost reduction. During the year, underlying revenue growth continued across the business, particularly in the UK, in the Beauty division and in Indonesia. As we start the current financial year this momentum, together with our new Cussons Mum & Me and Fudge ranges, will help to ensure this growth continues.

Our exciting joint venture with Wilmar is on track with the Nigerian palm oil refinery due to be completed by the end of the calendar year.

At the same time, we are working actively to reduce our cost base, and the supply chain optimisation project announced in March will significantly reduce the overhead base of our manufacturing activities. 

Our balance sheet remains strong with only a small net debt position and this gives us the capacity to pursue further investment opportunities which fit our strategic aims.

Clearly the world remains uncertain and volatile. However, consumer demand for high quality innovative products serving day to day needs continues, and we are well placed to serve those needs with a strong distribution footprint in key geographic markets. Whilst the situation in the Group's important Nigerian market remains fragile, we are confident that the Group will return to profitable growth in the current financial year. Overall performance since the year-end has been in line with expectations."