Carex

A continuous innovation pipeline and the launch of a new range of Carex bodywash products has helped PZ Cussons to a “strong” performance in its washing and bathing division in the UK over the past six months.

The consumer products group PZ issued a trading statement ahead of its interims on 26 January in which it said its beauty division had performed particularly well across its key European markets.

St Tropez’s new in-shower gradual tan lotion had generated strong sales and the Sanctuary brand had benefited from a new #LetGo campaign as well as the launch of new ranges, it said.

PZ Cussons reported that group operating profits were broadly flat in the half year to 30 November, compared with the same period last year.

It said a strong performance in Europe offset a difficult trading environment in Nigeria and the impact of weaker currencies in Asia and Africa.

The strength of the group’s innovative product pipeline and the positive impact of new launches had ensured the group’s market share positions were held or grew in its major markets and categories.

But performance in certain categories in Nigeria in the second half was likely to continue to be affected by the ongoing squeeze on consumer disposable income and by the tight environment of foreign exchange liquidity, the company said.

PZ Cussons made “good progress”, however, across its Asian markets, despite the challenges of increased costs form weaker exchange rates, reduced consumer disposable income and reduced results on translation to sterling.

It said its balance sheet remained strong and well placed to pursue new opportunities as they arose.

The strength of the group’s brand portfolio and innovation pipeline continued to ensure that the market shares of its products remained strong in all markets.

Performance in Europe and Asia was expected to continue to be robust in the second half, the statement said.