Britons’ growing appetite for fake tan and glossy hair wasn’t quite enough to offset chaos in Nigeria and falling sales in Australia for soap group PZ Cussons.
The Imperial Leather maker, which already warned on profits last month, said high raw materials costs, difficult trade in Australia’s homecare sector and the social and economic tensions in Nigeria hit profits despite robust trade in the UK.
For the year to June, pre-tax profit after exceptional items fell 55.1% to £48.5 million, down from £108.1 million last year. Pre-tax profits before exceptional items dropped 15.2% to £92.3 million. But revenue was up 4.7% to £858.9 million from £820.7 million last year.
Finance director Brandon Lee said: “Nigeria is our largest market and the situation there remains fragile but the UK has been strong and we have addressed issues in the Australian market.
“Australian homecare sales were hit by the rise of own-label from the supermarkets.”
In the UK, the group has hired ballet star Darcey Bussell, a judge on BBC One’s Strictly Come Dancing, to advertise its Sanctuary range and has launched a mother and baby range called Cussons Mum & Me.
Lee said: “Cussons Mum & Me was developed in house and targets a gap in the market from bump through to birth."
Other growth areas for the business include its beauty ranges with more premium brands such as St Tropez fake tan, The Sanctuary spa products and haircare brands Charles Worthington and the newly acquired Fudge.
PZ Cussons said it will maintain a final dividend of 4.487p a share.
