PZ Cussons has trimmed its profit forecast following declining sales of St. Tropez in the US.
A double digit decline in sales of the fake tanning brand in the country was offset by good growth in the UK and Europe, the company said in a fresh financial update, with revenue across both regions flat.
The Imperial Leather and Carex owner said it expects like-for-like revenue growth of 8% for the full 2025 financial year, with reported revenue of around £505m.
The second half of the year saw strong growth in Africa, while the APAC region returned to growth, driven by Indonesia.
The company, which also owns Charles Worthington and The Sanctuary Spa brands, now expects adjusted operating profit for the full year of between £52m and £55m.
That is down from the previous range of between £52m and £58m and is due to the “significant impact on group profitability as a result of the softer St. Tropez US performance” the company said in a statement.
It also reflects an additional £2m cost in the UK business associated with Extended Producer Responsibility regulations.
These factors were partly offset by cost management initiatives across the business, including the sale of its stake in PZ Wilmar, its Nigerian edible oils joint venture, which is expected to reduce the company’s debts from £158m to £111m.
“I am delighted to announce the sale of our stake in PZ Wilmar to our joint venture partner,” said PZ Cussons CEO Jonathan Myers.
“In doing so, we are exiting a non-core category, reducing the risk associated with our presence in Nigeria, and materially strengthening our balance sheet.”
“Having delivered a solid FY25 performance, our focus now is to continue transforming PZ Cussons into a business with stronger brands in a more focused portfolio, delivering sustainable profitable growth.”
The company will report its full financial results for 2025 in September.