PZ Cussons is an international consumer goods company with 140 years of trading history. It owns and builds brands across personal care, home care and baby care, including Carex, Imperial Leather, Original Source, Sanctuary Spa, Morning Fresh, St Tropez and Cussons Baby. Its priority markets are the UK, Nigeria, Indonesia and Australia, which together account for around 85% of revenue.
There are five compelling reasons why PZ Cussons represents an attractive investment opportunity.
1. Locally loved brands with high market shares
PZ Cussons does not sell generic global products. It builds brands that are deeply rooted in local consumer habits, and the result is a portfolio with impressive market positions. Carex holds around 37% of the UK liquid hand wash market, twice the share of its nearest rival. Morning Fresh holds 50% of the Australian washing-up liquid market, three times the share of its nearest competitor, and 56% in Nigeria. In Nigeria, 70% of revenues come from brands that are number one in their categories. These are durable, hard-to-replicate positions.
2. A more appropriate strategy is delivering results
Under chief executive Jonathan Myers, who was previously at P&G, PZ Cussons has become much more obviously marketing led. Its ambition is to build brands. The results are becoming visible. Management has set a clear ambition: mid-single-digit revenue growth and high single-digit earnings per share growth annually, implying a double-digit total return for shareholders when combined with the dividend.
3. A rebalancing in investment
PZ Cussons is doubling its R&D spend by 2027 and shifting its product pipeline from 90% renovation to a 50/50 split between renovation and innovation. This is a meaningful change for a business that previously under-invested in new product development, and it should drive new consumer recruitment and revenue growth over time.
4. A restored balance sheet
After the sharp devaluation of the Nigerian naira in 2023 stressed the balance sheet, management acted decisively. Asset disposals and cash generation have reduced net debt, from £112m at the end of FY25 to a consensus forecast of around £30m by the end of FY26. This includes cash balances Nigeria which stood at £24m at H125/26. Controls are in place to limit currency risk going forward.
5. Prospective earnings growth not fully discounted.
There is a correlation between price to earnings multiples and operating margin in this sector. Higher profitability is invested in innovation and brand building which increases the certainty of future growth. On this basis, PZ Cussons is beginning to stand out. Consensus forecasts point to 13% earnings per share growth in FY27, ahead of most peers. Were this growth to carry a higher level of certainty in the market’s mind, the prospective price to earnings multiple of 12 times on consensus forecasts would be significantly higher. If the company maintains guidance, the market’s confidence will increase over time.
Published 5 May 2026
