Imperial Leather maker PZ Cussons reported a decline in interim profit and revenue on Wednesday as it noted a drop in demand for hygiene products since the height of the pandemic.
In the half year ended 30 November 2021, adjusted pre-tax profit from continuing operations fell 8.3% to £32m, with revenue down 9.3% to £283.7m. The interim dividend per share was flat at 2.67p.
Cussons said the profit decline reflects a normalisation of demand in the UK hand hygiene category and the impact of the disposal of the five:am yoghurt business in Australia.
The company said it continues to expect to deliver adjusted pre-tax profit from continuing operations for FY22 within the current range of consensus estimates despite the backdrop of a volatile inflationary environment and accelerating cost pressures.
Chief executive officer Jonathan Myers said: “The Q1 revenue decline was driven primarily by Carex lapping unprecedented demand for hygiene products at the peak of the Covid-19 pandemic in the prior year.
“The business returned to revenue growth in Q2 with our core baby and beauty categories growing revenue in the first half overall. Revenue from Must Win Brands, excluding Carex, grew 10% and the overall business showed strong underlying momentum when comparing the results to the equivalent period two years ago.”
