Shares in PZ Cussons (LON:PZC) rallied after the consumer goods group delivered another FY26 profit upgrade amid ‘continued strong trading’. The positive earnings revision demonstrated that CEO Jonathan Myers’ refreshed growth strategy is working.
The Carex brand owner’s year-end net debt is expected to be more than £80 million lower year-on-year at below £30 million. This follows the sale of a stake in a joint venture.
For the year to May 2026, PZ Cussons now expects to report adjusted operating profit ‘at, or slightly above’ the upper end of the previously guided £53 million to £57 million range. At the start of the year, the group was guiding for profits in the £48 million to £53 million range.
Broad-based growth
The latest upgrade reflects continued strong trading and ongoing stability in the Nigerian Naira. Weakness in the African currency has impacted PZ Cussons’ profits in recent years.
The company expects to deliver reported revenue of roughly £540 million, up from £513.8 million in FY25. Investors can expect to see positive like-for-like growth of around 6%.
‘Performance continues to be broad-based,’ said PZ Cussons. The company highlighted growth across each of its four lead markets: the UK, Australia and New Zealand, Nigeria and Indonesia.
Guardrails in place
PZ Cussons said the ‘financial guardrails’ management are embedding to mitigate volatility in Nigeria have continued to reduce the group’s sensitivity to future movements in the Naira.
Looking ahead to FY27, PZ Cussons is ‘mindful’ of the potential impact of the Middle East conflict. But the company has ‘already taken actions which are expected to offset a large majority of any cost inflation’.
PZ Cussons’ shares have been poor performers for the past decade. Yet there is much to admire about this company with 140 years of trading history, where an exciting turnaround is underway.
The Manchester-based firm is investing behind its strong portfolio of personal care, home care and baby care brands. These range from Carex and Imperial Leather to Morning Fresh and Sanctuary Spa. Balance sheet concerns are being addressed, with debt coming down thanks to disposals.
Consumer goods companies are finding life tough due to rising costs and supply chain disruptions caused by the Iran war. However, PZ Cussons is showing resilience whilst benefiting from self-help. Its sharpened focus on building portfolios of locally-loved brands across developed and emerging economies is paying off. So long as the naira holds steady, we see potential for further upgrades in due course.
Read the press release here: https://www.pzcussons.com/investors/
