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PZ Cussons Reports for Year Ended May 2012, Launches New Beauty Brands

Posted: June 14, 2012

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For Asia, the positive momentum in Indonesia has continued with further growth in revenue and profitability. The market-leading Cussons Baby range has continued to grow through portfolio improvements and distribution expansion. As previously advised, the trading environment in the Australian home care category worsened during the year, resulting in a 25% reduction in revenue and lower margins, and measures to address the underperformance of the Australian business are being successfully implemented with operating results improving on a monthly basis.

In Africa, the company reports that Nigeria saw strong revenue growth in the first half as a result of positive momentum following the elections last year. However, the national strike in January, the social instability in the North, and reduced consumer spending power following the removal of part of the fuel duty subsidy, combined to result in broadly flat revenue performance during the second half of the financial year. Also, construction of the palm oil refinery with Wilmar is on track with completion due by the end of the calendar year.

Across the company, the focus remains on driving revenue growth through brand innovation and renovation, while reducing costs through margin improvement initiatives. The major supply chain optimization project is on track to significantly reduce the overhead footprint of the company’s manufacturing activities, and the benefits will begin to be seen in the new financial year.

Overall, despite both the uncertain economic environment in Europe and the economic and social tensions in Nigeria, PZ Cussons remains confident that it will return to profitable growth in the new financial year.