PZ Cussons boss cautions over ‘most challenging’ environment as sales rise

Jonathan Myers, chief executive officer of PZ Cussons, said the business has cut costs across its operations to offset rising costs.

Henry Saker-Clark
Wednesday 13 April 2022 12:58 BST
Undated handout photo issued by PZ Cussons of their Imperial Leather infusions range. The company said cost rises have increased in recent months (PZ Cussons/PA)
Undated handout photo issued by PZ Cussons of their Imperial Leather infusions range. The company said cost rises have increased in recent months (PZ Cussons/PA) (PA Media)

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The boss of Imperial Leather owner PZ Cussons has warned the firm is facing the “most challenging” environment many have seen as cost pressures escalated further in recent weeks.

However, the company saw shares improve as it stuck firm with its financial guidance despite the caution.

Jonathan Myers, chief executive officer of PZ Cussons, said the business has cut costs across its operations to offset rising costs.

“The external environment is amongst the most challenging many of us have seen,” he said.

“Input costs have continued to escalate in recent weeks, and it is likely that household budgets will soon come under pressure.”

The company said changes to pricing and productivity improvements partially offset higher cost headwinds in the past quarter.

PZ Cussons reported that group like-for-like revenues grew by 8.5% to £146.3 million for the three months to February 28, compared with the same period a year earlier.

It said this was particularly boosted by strong growth in Africa as its European sales nudged lower for the period.

Nevertheless, the group said it was optimistic as growth across the group accelerated from the previous quarter.

Mr Myers added: “It is just over a year since we set out our new strategy, to return PZ Cussons to sustainable, profitable revenue growth.

“While the coming months will continue to be challenging for us and the wider consumer goods sector, the strength of our brands and our strategic progress gives me confidence in the long term prospects for the business.”

Shares in the business moved 2.7% higher to 206p in early trading.

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