PZ Cussons has upgraded its profit forecast for 2026, after like-for-like revenue growth soared to 9.5% in the first half of the year.
Sales growth in all of the company’s ten biggest brands – which include Carex, Imperial Leather and Original Source – and a strong recovery in the company’s Africa business have helped power the company’s turnaround.
Declaring an expected £53-57m in adjusted operating profit in the year to 31 May 2026, compared to previous forecasts of £50-£55m, PZ Cussons chief executive Jonathan Myers praised the company’s “strong performance” in H1.
“This performance, with a healthy balance of price and volume increases, and growth in each of our largest ten brands, has been driven by targeted investment in innovation, brand-building and continued strong commercial execution,” he said.
“Combined with tight cost control, we delivered double-digit growth in adjusted operating profit and adjusted earnings per share allowing us to increase guidance for the full year.”
Adjusted revenues climbed 9.5% to £269.3m in the six months to 29 November, with adjusted operating profit up 31.9% to £35.6m. Operating margin improved 240 basis points compared to the same period last year, rising to 13.2% in the half.
“We have concluded our strategic review, which has resulted in a significantly strengthened balance sheet and a more focused and more resilient business,” Myers added.
“Against this backdrop, we are setting out plans in our capital markets event to deliver sustainable shareholder value, building winning portfolios of locally-loved brands in four lead markets.
“With a balance between developed and emerging markets and building on competitive go-to-market capabilities and manufacturing scale, we are targeting double-digit total shareholder return through the cycle.”
Growth was strongest in Africa, where the company had faced difficulties in recent years as chronic inflation in Nigeria eroded company profits. PZ Cussons had been looking to sell the business, but declared in December it had called off the search for a buyer and would target long-term growth in the continent, where the average age is significantly younger than much of the rest of the world.
In the UK, growth was led by PZ Cussons’ Sanctuary Spa brand, with “successful Christmas gifting” against a competitive backdrop.
The company’s troubled St Tropez tanning brand also a minor turnaround, moving to revenue growth in the US thanks to its partnership with US consumer products group Emerson.
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