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Birmingham Post
Birmingham Post
Jon Robinson

Original Source, Carex and Imperial Leather maker in £20m pledge to transform business

The maker of Original Source, Carex and Imperial Leather has promised to spend £20m to 'transform' the business over the next three years.

Manchester-headquartered PZ Cussons said the investment will be partly funded by selling off 'non-core assets'.

The pledge comes as the company reported a revenue of £592.8m for the year to May 31, 2022, down from the £603.3m it posted in the prior 12 months.

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Its pre-tax profits dipped from £71.5m to £65.3m over the same period.

On its outlook, the company said: "Notwithstanding the significant challenges related to cost inflation and consumer spending, which will remain uncertain over the coming months, we expect to deliver FY23 results in line with current consensus estimates.

"Reflecting FY22 comparatives, and the phasing of cost inflation and forward purchasing cover, we expect that the adjusted operating profit margin will be weighted towards H2.

"We expect to make investments of approximately £20m over FY22-25 which will support the continuing transformation of the business and will be in part funded by further disposals of non-core assets. We expect these to be accounted for as adjusting items.

"Longer term, the actions we have been taking and the investments we will continue to make, will build towards a higher growth, higher margin, simpler and more sustainable business.

"Specifically, we are increasing our LFL revenue growth ambition to mid-single digit growth (compared to low-mid single digit growth previously) and maintaining our ambition for adjusted operating profit margins in the mid-teens."

Chief executive Jonathan Myers said: "PZ Cussons has delivered a resilient performance over the past year, against the backdrop of challenging conditions in our markets.

"We have achieved this through our strategy to invest in our brands, focusing on the core categories of hygiene, baby and beauty, while significantly raising the bar on the way we operate.

"We are reporting a second year of strategic progress, with revenue and operating profit both higher than two years ago.

"We have made good progress in addressing the legacy issues in our business and are now moving from turnaround to transformation.

"While there is plenty more to do and the external environment remains challenging, we have made a good start to the current financial year and continue to see significant long term opportunities ahead as we build towards a higher growth, higher margin, simpler and more sustainable business."


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