PZ Cussons (LSE:PZC) PLC reported a rise in revenue but a fall in profit, hit by a drop in operating margin and a one-off charge relating to Sanctuary Spa.
The consumer goods firm, which makes Carex soap, said revenue in the year to 31 May 2023 rose 11% to £656.3 million from £592.8 million the year before with like-for-like (LFL) revenue growth of 6.9% - the third consecutive year of LFL growth.
Statutory pre-tax profit fell 4.5% to £61.8 million from £64.5 million while basic earnings per share slipped 27% to 8.70p from 11.88p.
The company said operating margin declined by 200 basis points while the EPS decline also reflected the £16.5 million impairment of the Sanctuary Spa brand, as well as increased investment related to transformation.
The firm said performance in the new financial year has been in line with expectations, with modest year-on-year growth in LFL revenue and a higher operating profit margin.
“We have seen continued good revenue growth in Nigeria and ANZ, a stable performance in the UK, offset by a further decline in Indonesia,” it said.
The dividend was left unchanged at 6.40p, reflecting the devaluation of the Nigerian naira following the year end, which is expected to have a material adverse impact on the near-term reported financial performance.