PZ Cussons (PZC) H2 2025 earnings summary

Executive summary

• Achieved strong performance in priority markets, notably the UK and Indonesia, with profitability improvement despite profit decline from St. Tropez and Naira devaluation.

• Progressed strategic initiatives, including brand-building, cost reduction, and portfolio simplification through the Wilmar JV sale and a new US strategy for St. Tropez.

• Brand building and operational model enhancements are driving sustainable, profitable growth.

Financial highlights

• Group revenue declined to £513.8m, mainly due to a £47.4m FX impact from a weaker Naira; like-for-like revenue growth at constant currency was 8%.

• Adjusted operating profit fell 6% to £54.9m, with margin at 10.7%.

• Statutory operating profit was £21m, reversing a prior year loss of £84m.

• Adjusted EPS declined 8.5% to 7.34p year-over-year.

• Free cash flow improved to £42.3m; net debt reduced to £112.0m, with net debt/EBITDA at 1.7x.

• Dividend maintained at 3.60p per share.

Outlook and guidance

• FY2026 group adjusted operating profit expected between £48–53m, excluding Wilmar.

• Net debt forecast to fall below 1x EBITDA post-Wilmar sale.

• Cost savings of £5–10m targeted for FY2026, with some reinvestment in marketing.

• Proceeds of £47m from Wilmar sale and £15–20m from non-core asset disposals expected.