PZ Cussons (LSE:PZC) beat its recently upgraded annual profit forecast and resumed dividend growth after stronger sales and a sharp reduction in debt.
The Carex and Imperial Leather owner reported adjusted operating profit of £59.5 million for the year to 31 May, up 24.5% on last year and above the £53-57 million guidance range given in June. It excludes the contribution from the sold PZ Wilmar joint venture.
Adjusted earnings per share fell 2.7% to 7.14p, however, because of a larger minority interest in Nigeria and a higher tax rate.
Revenue rose 5.4% to £541.4 million, with like-for-like growth of 5.8%, comprising a 4.3% contribution from pricing and product mix and a 1.5% increase in volumes.
St Tropez sales rose 6.9% in North America following a change in its US distribution partnership, although declines in the UK and Europe meant the brand contracted overall.
Net debt dropped by £87 million to £25 million, comfortably meeting guidance, with the reduction driven largely by £51.2 million of proceeds from the PZ Wilmar disposal.
The strengthened balance sheet prompted the board to increase the annual dividend by 2.8% to 3.70p per share, marking a resumption of dividend growth.
Trading in the 2027 financial year has started in line with expectations, with adjusted operating profit forecast to meet current market expectations.
