PZ Cussons plc Board is recommending a final dividend of 3.73 pence which is unchanged on the previous year. This represents a total dividend for FY23 of 6.40p. Subject to approval at the AGM, which will be held on 23 November 2023, the final dividend will be paid on 30 November 2023 to shareholders on the register at the close of business on 2 November 2023.
Other financial highlights include:
Reported revenue grew 10.7% as a result of LFL revenue growth, the contribution of Childs Farm, which was acquired in March 2022, and favourable FX movements.
Adjusted operating profit margin broadly flat as an 80bps improvement in gross profit margin funded increased investment in capabilities and offset cost inflation. Adjusted operating profit margin improved, excluding Childs Farm.
Continued profitable revenue growth in Nigeria contributed to the Group's 12.6% growth in adjusted profit before tax but the impact of the resulting tax charge and increased non-controlling interest led to an adjusted EPS decline of 10.7%.
On a statutory basis, the operating margin declined by 200bps and EPS declined by 26.8%, reflecting a £16.5 million impairment of the Sanctuary Spa brand, as well as increased investment related to transformation.
Improved cash generation with free cash flow of £69.9 million (FY22: £58.0 million) primarily driven by an improvement in working capital, resulting in a net adjusted cash position of £5.7 million.
Increase in gross borrowings to £251.2 million (FY22: £174.0 million) reflecting the challenges of repatriating cash from Nigeria, where the cash balance was approximately £200 million.