PZ Cussons (PZC) H1 2025 earnings summary

Executive summary

• Like-for-like (LFL) revenue grew 7.1%, driven by innovation, pricing, and brand activation in the UK, Indonesia, and ANZ, despite a 10% reported revenue decline due to a 55% Naira devaluation.

• UK delivered its strongest profit performance in three years, with Sanctuary Spa gifting sales up over 30% year-over-year and improved profitability from overhead efficiencies and Childs Farm.

• Indonesia achieved a third consecutive quarter of growth, and ANZ gained market share despite category softness and distribution disruption.

• Portfolio transformation is progressing, focusing on Africa and the St. Tropez brand to unlock value and reduce complexity.

• Group performance trends from the first half have continued, keeping the business on track to meet full-year profit expectations.

Financial highlights

• Reported revenue declined by 10% to £249.3m, mainly due to a 55% devaluation of the Naira, which accounted for £42.7m–£46m of the decline.

• Adjusted operating profit was £27.0m (down 11.8% year-over-year), with margin at 10.8% (down 20bps); profit before tax fell to £19.8m.

• Adjusted EPS declined by 10% to 3.89p, less than profit before tax, due to a lower effective tax rate and reduced minority interest.

• Free cash flow improved to £22.7m; net debt reduced to £106.1m from £115.3m at the start of the year.

• Dividend per share maintained at 1.50p.

Outlook and guidance

• FY25 adjusted operating profit guidance raised to £52–58m, reflecting reclassification of £5m FX losses as adjusting items.

• LFL revenue growth trends expected to continue for the remainder of FY25; performance to end of January in line with expectations.

• Long-term confidence in delivering sustainable, profitable growth with a more focused portfolio.