PZ Cussons (LSE:PZC) said revenues continued to recover in the third quarter and expects full year profit to meet expectations despite rising costs and the squeeze in household spending.
The Carex soap and Imperial Leather maker saw a 8.5% gain in revenues to £146.3mln in the third quarter ending February 28, 2022.
And added it expects to deliver growth in like-for-like revenue and adjusted pretax profit within the range of current expectations.
"We are aligning our portfolio around the core categories of hygiene, baby and beauty and our priority markets," said Jonathan Myers, chief executive.
"Our strategy is working, with revenue momentum from our Must Win Brands improving, and up 12.6% compared to before the pandemic."
Speaking about the challenging environment, Myers added: "Input costs have continued to escalate in recent weeks, and it is likely that household budgets will soon come under pressure. We are removing costs that the consumer does not value, and have plans in place to meet evolving consumer needs."
The increase in revenue extended the 5.5% growth in the previous quarter, rebounding from a 9.3% drop in first quarter.
The company said the new strategy outlined a year ago is helping "sustainable, profitable revenue growth," with cost headwinds partly offset by pricing and productivity actions.
It also reported a stronger portfolio following the disposal of non-core assets and the recent acquisition of Childs Farm.
Momentum continues to improve in Europe and Americas with Carex again taking share in the quarter and revenue remaining above pre-pandemic levels.
In Africa, which accounted for 41% of third-quarter 2022 revenue, the simplification of its Nigerian business is ongoing, including realising an additional £4mln gross proceeds from the sale of residential properties, with further sales expected in the fourth quarter.