PZ Cussons (PZC) H2 2025 earnings summary

Executive summary

• Achieved strong performance in priority markets, notably the UK and Indonesia, with profitability improvement despite profit decline from St. Tropez and Naira devaluation.

• Advanced strategic transformation through the sale of a 50% stake in PZ Wilmar and retention of St. Tropez with a new US-focused strategy.

• Continued focus on brand-building, operational efficiency, and cost reduction to drive sustainable, profitable growth.

Financial highlights

• Group revenue declined to £513.8 million, mainly due to a £47.4 million FX headwind from the weaker Naira; like-for-like revenue growth at constant currency was 8%.

• Adjusted operating profit fell to £54.9 million, margin at 10.7%; excluding Wilmar, margin would have increased by 30bps.

• Statutory operating profit was £21 million, reversing a prior year loss of £84 million.

• Adjusted EPS declined 8.5% to 7.34p due to a higher effective tax rate.

• Free cash flow improved to £42.3 million; net debt reduced to £112 million, with net debt/EBITDA at 1.7x.

Outlook and guidance

• FY2026 group adjusted operating profit expected between £48–53 million, excluding Wilmar.

• Net debt projected to fall below 1x EBITDA after Wilmar sale and asset disposals.

• Cost savings of £5–10 million targeted for FY2026, with some reinvestment in marketing.

• Trading year-to-date in line with expectations; group like-for-like revenue to end of September expected up 10%.

• Proceeds from Wilmar sale (£47 million) and surplus asset sales (£15–20 million in FY26) to support future growth.