PZ Cussons has bounced back into the black as the business made “continued progress” on its group transformation plans.
While CEO Jonathan Myers warned there was “more to do” to fully transform the group, he said the year to the end of May 2025 had been one of “continued progress” against the turnaround strategy.
“We have delivered good momentum across most of our portfolio, driven by our renewed focus on more competitive brand activation, strengthened innovation and successful commercial partnerships,” he added.
“At the same time, we have taken action to address our cost base, as we embed our new operating model.”
PZ Cussons’ operating profit jumped to £20.6m, up from a loss of £83.7m in the prior year. The company also registered a pre-tax profit of £6.5m, compared with a loss of £95.9m in FY24 as the group suffered from a massive devaluation of the Nigerian currency.
Cost of sales and administrative expenses at the group fell dramatically, down by £89.8m and £32.9m respectively.
Like-for-like revenues rose by 8% but this was driven by pricing in the African market worldwide. Excluding African, like-for-like revenue growth for the year came in at just 0.3% on a 0.7% increase in volumes. PZ Cussons attributed the group’s overall 2.7% decline in revenues to £513.8m to currency headwinds.
PZ Cussons’ Europe and Americas unit achieved 0.6% like-for-like revenue growth, up from a 1.9% decline in 2024, and bumped up its operating margin 230 basis points to 18.5%. Operating profit in the unit jumped from £700k to £50.9m.
UK highlights included an additional £3m earned in seasonal gifting across the group’s brands, and an increase in distribution points by 3%. Myers added that further opportunity in brand collaborations – such as that with children’s animated characters Gruffalo and Bluey – would be explored.
Last year’s group-wide loss had been driven in large part by a financial exchange loss of £107.5m on the back of instability in the Nigerian naira – an issue that has plagued the business’ growing Africa unit in recent years.
While the naira was stable in FY25, it remained on average 38% weaker. Almost 35% like-for-like growth in Africa was likewise put down to elevated inflation in Nigeria, which remained above 30% for much of the year. PZ Cussons said it had to perform nearly 20 rounds of price increases to keep up.
Myers added the group’s exposure to future shocks had been “greatly reduced”. The company’s Nigerian operations are now self-sufficient in US dollar funding, the group has repatriated surplus cash to repay UK borrowings, and intercompany liabilities reduced.
In June, PZ Cussons announced it would sell its 50% share in palm oil company PZ Wilmar for an expected £51m after costs, with completion expected at the end of 2025.
“This sees us exit a non-core category, reduce the risk associated with our presence in Nigeria, and materially strengthens our balance sheet,” said Myers.
PZ Cussons also announced it would transform tanning brand St Tropez in-house, turning down several offers in a tough auction process hampered by poor results.
“We are confident in the new direction that has been set for the brand, with a renewed operating model built around a focused and incentivised team with the brand leader reporting directly to me,” said Myers.
No comments yet