Sparks

What’s going on here?

PZ Cussons reported FY25 revenue of £513.8 million, down 2.7% on a reported basis but up 8.0% like-for-like, driven by pricing increases in Africa to offset inflation. Adjusted operating profit fell 5.8% to £54.9 million as foreign exchange headwinds and reduced contribution from the PZ Wilmar joint venture offset operational improvements. The consumer goods group announced the $70 million sale of its PZ Wilmar stake and decided to retain St.Tropez after a strategic review.

What does this mean?

PZ Cussons’ transformation strategy is showing early signs of progress despite headline profit declines. The UK delivered stronger profitability through better innovation and commercial execution, with successful seasonal gifting campaigns adding £3 million in revenue. Indonesia achieved its fifth consecutive quarter of revenue growth, with e-commerce doubling to 8% of total revenue and the Cussons Baby warming oil innovation gaining traction. However, St.Tropez revenues declined double-digits in the challenging US market, while Nigerian operations faced ongoing currency volatility despite improved stability. The £47 million net proceeds from the PZ Wilmar disposal will significantly reduce net debt from £112 million and improve covenant metrics.

Why should I care?

For investors, PZ Cussons represents a turnaround story with mixed near-term prospects but clearer strategic direction. The company’s portfolio simplification through the PZ Wilmar exit and decision to retain St.Tropez with a new US partnership strategy provides focus on core hygiene, baby and beauty categories. Management expects FY26 adjusted operating profit of £48-53 million (excluding PZ Wilmar), with £5-10 million cost savings to be reinvested in marketing and capabilities. The balance sheet strengthening from asset disposals and improved Nigerian currency stability reduce key risks, though execution of the brand transformation remains critical for sustainable growth.