PZ Cussons PLC

Business and Financial Review • Sep 23, 2014

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RNS Number : 3075S

PZ CUSSONS PLC

23 September 2014

23 September 2014

PZ Cussons Plc

(the "Group")

Interim Management Statement

PZ Cussons Plc, a leading international consumer products group, today issues the following interim management statement which covers the period 1 June 2014 to 22 September 2014, in advance of its Annual General Meeting, to be held at 10:30 today.

Overview of financial performance and position

The board is pleased to announce that the performance of the Group during the period has been in line with management expectations. The financial position of the Group remains strong with cash generation during the period also in line with management expectations.

Trading Update

Europe

In the UK, performance in the washing and bathing division has been strong despite challenging trading conditions, driven by an exciting innovation pipeline including the relaunch of the entire Imperial Leather range during the period.

The beauty division has performed well across its key markets of UK, US and Australia, with St Tropez's performance continuing to be boosted by Kate Moss as brand ambassador.

Performance in the smaller markets of Poland and Greece has been in line with expectations.

Asia

In Indonesia, good progress has been made in expanding the babycare portfolio as well as building non-babycare brands such as Original Source.

Performance in Australia has been good across the categories of Home Care, Personal Care, Beauty and Food & Nutrition. The acquisition of Australian food brand 5:AM, which completed in early August for £44.1m in cash, has shown pleasing performance to date with growth in line with expectations. The international expansion of Rafferty's Garden, acquired last year, will commence shortly with the launch of the range into the New Zealand market.

Trading in Thailand and the Middle East has also been in line with expectations.

Africa

In Nigeria, disruption in the north of the country has continued to worsen, resulting in a decline in sales in that region. Good growth has continued in the south of the country, in particular in the electrical goods business and in the two food and nutrition joint ventures. Whilst the impact of the West African Ebola outbreak has been relatively small in Nigeria, the situation is being carefully monitored. 

In Ghana, performance has been affected by the continued weakening in the Cedi, whilst in Kenya performance has been in line with expectations.

Outlook

Whilst trading conditions in most markets remain challenging, the Group remains focussed on a dynamic and fast brand renovation and innovation programme, an ongoing cost reduction programme and successful delivery of new areas of growth such as Rafferty's Garden, Five:AM and the PZ Wilmar joint venture.

These initiatives will help to offset the continuing macro challenges, including foreign exchange and raw material volatility, and the reduction in profits from Poland as a result of last year's Home Care brands sale.

A further trading update will be made on 10 December 2014.

Enquiries:

PZ Cussons Plc

Brandon Leigh                                                         Tel: 0161 435 1236

Instinctif Partners

Zinka Bozovic                                                          Tel: 020 7457 2821 / 07769 255380

This information is provided by RNS

The company news service from the London Stock Exchange

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