PZ Cussons has returned its profit guidance to earlier levels after a strong performance in Africa, where sales grew over 25% in the first half of the year.
The Original Source owner lowered its forecast over the summer due to the new plastic tax in the UK (EPR) and a softer St Tropez performance in the US.
Its strong growth in Africa has led it to raise operating profit guidance for the current financial year to a range of £50m to £55m, compared with £48m to 53m.
This will be weighted towards the first half of the year, with an increase in marketing spend in the second half.
In a brief trading update ahead of its annual general meeting today, PZ Cussons said like-for-like revenue growth was around 9% in the first half of the year, primarily due to growth in Africa. Excluding Africa, like-for-like sales growth is expected to be around 2%.
In June, PZ Cussons sold its stake in PZ Wilmar, its Nigerian edible oils business, for £51m in an effort to simplify the group.
Formed in 2010 through a joint venture of PZ Cussons and Wilmar, PZ Wilmar is one of the largest palm oil businesses in Nigeria.
PZ Cussons said this week the deal remained on track to be completed by the end of 2025.
The group is also conducting a full strategic review of its Africa business, which it expects to report on at its full-year interim results in February.
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