UK-listed soap and shampoo manufacturer PZ Cussons has said it is on course to meet full-year management expectations despite the negative impact of currency fluctuations.
The maker of Imperial Leather and Original Source said pre-tax profit before exceptional items for the year to 31 May was expected to rise approximately 6% year-on-year.
The rise in profits comes despite the translation and transactional effect of weakening currencies, costing the firm around £12m. Excluding this impact, profits would have been 17% higher than the previous year, the company said.
“Whilst trading conditions in most markets remain challenging, the group remains focussed on a dynamic and fast brand renovation and innovation programme, an ongoing cost reduction programme and successful delivery of new areas of growth such as Rafferty’s Garden and the Wilmar joint venture,” the company stated.
“These initiatives will help to offset the continuing macro challenges and the reduction in profits from Poland as a result of the homecare sale.”
PZ Cussons sold its Polish homecare brands in February for £46.6m in cash.
The company said that in the UK its St Tropez, Sanctuary, Charles Worthington and Fudge brands were performing strongly and its UK washing and bathing products performed after a renovation programme.
Profitability in Australia, Indonesia and Ghana was particularly affected by currency weakness, but the company said its sales performance was generally in line with expectations.