Sparks commentary - PZ Cussons

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Sparks - PZ Cussons

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PZ Cussons (LSE: PZC) – Reassuring Q127 trading update
Published by Nick Hawkins

PZ Cussons has released a brief but reassuring trading statement. Group like-for-like revenue growth in Q1 was  up 4.5% and expectations for the full-year operating profit remain unchanged.

The comparative is demanding at +10%, against a period when Africa was in full-blown recovery mode, at +39% as naira-driven inflation was put through. There was also a strong performance from Asia-Pacific at +7%. The two-year performance is therefore impressive. Inevitably, performance will have been more geographically even than the comparative period.

Investors will be encouraged that the strategy laid out at the capital markets day earlier this year is being delivered. The group’s strong locally loved brands are capable of narrowing the profitability gap with global peers and this will drive higher valuation multiples.

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