PZ Cussons (LSE:PZC) PLC, the producer of hygiene products such as Carex, reported a slight drop in full-year profits but said these were still ahead of market expectations.
Adjusted pre-tax profits fell 2.9% to £66.6mln with pricing and productivity initiatives largely offsetting cost inflation which cost the business around £40mln, equating to around 11% of sales growth.
Revenues also dipped for the year but are showing an improving trend with growth in the fourth quarter continuing into quarter one of the new financial year.
Adjusted revenue for the year was £592.8mln, down 1.7%, hit by forex movements and disposals, but quarter four like-for-like sales (LFL) increased 7.1% driven by strong price/mix growth and limited volume impact.
This momentum has continued into quarter one of the new financial year with LFL revenue growth of 6.7%.
Revenue growth on a LFL basis was seen in seven of the company's eight 'Must Win Brands', reflecting better execution of and improved returns on brand investment, with Carex growing market share by two percentage points.
Looking ahead, the group said it expects to deliver full-year 2023 results in line with current expectations while it raised its long-term ambition of delivering LFL revenue growth to mid-single digits from low-mid single digits before with adjusted operating profit margins seen in the mid-teens (compared to 11.5% in full year 2022).
Jonathan Myers, chief executive officer, said: "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."