Look at those results today.Superbly run business, funding good growth from own cash generation. Regular increases in dividend. Have held for many years within PEP - not one to double overnight, but IMO one for serious investors to lock away for the long term. 10 for 1 share split may help marketability going forward.Always DYOR etc.

StockMarketWire.com
PZ Cussons, an international consumer products group, has warned that its profit for the full year will fall short of expectations.

In January, the group said performance in the first half of the year had been constrained by trading conditions in the UK and Nigeria, and that delivery of the full year result would be dependent on trading conditions in those markets for the balance of year.

The board anticipates that profit before tax will be in the range of £80 million - £85 million.

Results in the group's other markets remain robust with performance in Australia, Indonesia and in the group's beauty division ahead of the prior year.

The UK washing and bathing division has continued to experience lower levels of purchases reflecting consumer caution across all retail channels caused by economic uncertainty and inflation out-stripping wage growth. Whilst new product launches have been well received, they have not had the desired uplift in sales to compensate for the wider volume and margin shortfall.

Following the significant cost inflation of recent years, the Nigerian consumer's discretionary income remains under pressure with subdued buying levels. As a result the usual peak season uplift has not occurred to the expected level. Consequently inventory levels in the trade remain high leading to intense competition, most noticeably in the milk category, which in return is resulting in lower volumes, prices and margins.

The group is now conducting a reassessment of the structure of its operating model to further reduce the overhead base; a review of product costs with a focus on areas such as packaging reduction; a review of the group's milk business in Nigeria with an objective of returning it to profitability; and a re-prioritisation of the group's new product pipeline to focus on fewer, bigger projects requiring lower levels of complexity.

Investec today reaffirms its buy investment rating on PZ Cussons PLC (LON:PZC) and cut its price target to 309p (from 374p)

StockMarketWire.com
PZ Cussons reported macro conditions will remain challenging with general elections in Nigeria and Indonesia falling in the second half of the new financial year in its trading update for the year to 31 May 2018.

In the interim results announcement in January, the company reported that performance in the first half of the year had been constrained by trading conditions in the UK and Nigeria.

In the trading update in March, PZ Cussons said trading conditions in these two markets remained difficult and it expected profit before tax for the full year to be in the range of £80m to £85m.

During the last few months of the year, performance in the UK was in line with revised expectations and, whilst trading conditions in Nigeria have tightened further, expected profit before tax for the full year will be in the range previously indicated, albeit towards the bottom end of the range.

Results in the group's other markets remain robust with performance in Australia, Indonesia and the Group's beauty division ahead of the prior year.

AFRICA
In Nigeria, whilst higher oil prices contributed to increased foreign exchange reserves and a relatively stable exchange rate regime, liquidity has not flowed down into the economy. In addition, wage inflation continued to remain well behind the significant cost inflation of recent years, resulting in consumer discretionary income under pressure with subdued buying levels.

As a result, the usual peak season uplift did not materialised resulting in volumes, prices and margins being impacted across most areas of the Nigerian portfolio.

There was no structural change in the landscape of the categories in which we operate with brand shares remaining strong. The lower profitability is therefore a reflection of a weaker overall market with total volumes, prices and margins all lower.

ASIA In Australia, profitability of the business continued to improve with new product launches and margin improvement initiatives across the key categories of Personal Care, Home Care, Beauty and Food & Nutrition.

In Indonesia, profitability was good with mix improvement across both the core Cussons Baby range as well as from recent new product launches under Imperial Leather and Cussons Kids.

EUROPE
Revenue and profitability in the UK washing and bathing division were affected by the tightening UK retail landscape, with consumers shopping more cautiously as a result of economic uncertainty and inflation out-stripping wage growth. Whilst new product launches have been well received, these have not been sufficient to compensate for the wider volume and margin shortfall.

The Beauty division performed well across all brands of St Tropez, Sanctuary, Charles Worthington and Fudge, with good growth in particular coming from the US market.

INITIATIVES
As outlined in March, there are a number of initiatives underway to improve the efficiency of the business:

- A further optimisation of the group's operating model. This will further reduce the overhead base, as well as improve the speed at which new products are brought to market. The cash cost will be circa £10m over the next two years, offset by lower capital expenditure requirements

- A further optimisation of the group's product portfolio in Nigeria across the HPC (Home and Personal Care) and Nutricima (milk) businesses. The objective is to restore margins in the HPC business and restore the Nutricima business to profitability

- A re-prioritisation of the group's new product pipeline in all markets to focus on fewer, bigger projects requiring lower levels of complexity

- A review of product costs across all categories with a focus on areas such as packaging reduction and in conjunction with a drive to reduce plastic consumption

- An evaluation of other growth opportunities utilising the Group's product portfolio and distribution capability.

StockMarketWire.com
Consumer goods group PZ Cussons posted a 23% fall in annual profit after subdued market conditions in Nigeria and the UK squeezed its margins.

Pre-tax profit for the year through March declined to £66.6m, as revenue fell 5.8% to £762.6m.

Adjusted pre-tax profit fell 22% to £80.1m, in line with the company's most recent guidance for a figure at the bottom end of a £80m-to-£85m range.

PZ Cussons held its annual dividend steady at 8.28p per share.

Adjusted operating profit in the African division fell 78%, while rising 17% in the Asian division and coming in broadly flat in the European division.

In Nigeria, the company said a sustained lack of liquidity at both consumer and trade level had resulted in a significant contraction in the size of the market, resulting in lower volumes, prices and margins.

'In the absence of an indication as to when liquidity in Nigeria may improve ahead of the February 2019 general elections, we are taking steps to optimise further our overall product portfolio and to reduce our cost base,' the company said.

In the UK, growth in the beauty division partially offset more challenging trading conditions faced in the UK washing and bathing division.

'We remain focused on innovation but with a sharpened lens on fewer, bigger, higher margin product launches which will differentiate further our brands, as well as a reduction in overheads through optimising our operating model, chairman Caroline Silver said.

'The group's balance sheet remains strong and we will continue to evaluate growth opportunities utilising the group's brand portfolio and distribution capability.'

'Whilst we expect another challenging year ahead, the business is well placed to return to growth and consequently the board has maintained the full year dividend.'

StockMarketWire.com
Consumer goods firm PZ Cussons said trading in Nigeria, currently weak due to the uncertain economic situation, would determine the performance of the business in its financial year to May 2018.

The group highlighted a good performance in Europe driven by product innovation and a similarly 'good' showing in Asia, though partly offset by the weakness of Asian currencies against sterling.

Currency weakness was part of the problem in Nigeria with the naira declining 15% against the US dollar in the first half of PZ Cussons financial year.

The company also noted that consumer disposable income had remained weak ahead of the February 2019 general election. As a result first half profit from the country will be down year-on-year.