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Fashion & brands

PZ Cussons lifts guidance as growth improves in first half

PZ Cussons shares were lathered up 9.3% to 87.77p after the soap maker upgraded its full-year guidance after enjoying double-digit profit growth in the first half.

Revenue increased 8% to £269.3 million in the six months to 29 November, with like-for-like growth of 9.5% as sales improved across its four core markets.

Adjusted operating profit jumped 32% to £35.6 million, as margins expanded 13.2% from 10.8%, and adjusted profit before tax leapt 50.5% to £29.8 million.

Chief executive Jonathan Myers said the performance reflected a mix of price and volume increases, with growth in each of the group's largest ten brands, "driven by targeted investment in innovation, brand-building and continued strong commercial execution".

Net debt fell by £27.7 million compared with May, helped by free cash flow of £23.2 million and proceeds from disposals, including £48.5 million received to date from the sale of its stake in the PZ Wilmar joint venture.

Given the performance, the group now expects adjusted operating profit of £53-57 million for the 2026 financial year, up from November's guidance of £50-55 million.

A dividend of 1.50p per share was declared, unchanged year on year.

Myers added: "We have concluded our strategic review, which has resulted in a significantly strengthened balance sheet and a more focused and more resilient business.

"Against this backdrop, we are setting out plans in our Capital Markets Event to deliver sustainable shareholder value, building winning portfolios of locally-loved brands in four lead markets.

"With a balance between developed and emerging markets and building on competitive go-to-market capabilities and manufacturing scale, we are targeting double-digit total shareholder return through the cycle."