PZ Cussons has lifted its profit forecasts thanks to a strong performance in Africa, where sales grew by more than 25% in the first half of the year.
The Original Source owner said in a trading update ahead of its AGM that it now expected operating profits for the financial year to 31 May 2026 to be in a range of £50m to £55m, compared with £48m to £53m given in September when it reported annual results.
This will be weighted towards the first half of the year, with an increase in marketing spend expected in the second half.
Shares in the group have soared by more than 12% today on the back of the update.
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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