PZ Cussons profits soar

Imperial Leather soap and Original Source maker PZ Cussons has seen operating profits climb 13% in the last six months to £45.3m. In Europe, the company has been supported by “robust” numbers in UK Washing and Bathing and “encouraging” new Mum & Me sales. Parts of Europe - Greece - remains problematic though there’s strong performance from Poland. “Our balance sheet remains strong and we have the appetite to pursue further investment opportunities which fit our strategic aims,” said the company in a statement.

However PZ Cussons acknowledged that Nigeria – where 90% of its African revenues are generated - is a concern, with operating profits sinking markedly in the region, from £13.7m to £13m. “Consumers across the country [Nigeria] continue to adjust to lower disposable incomes as a result of the removal of part of the fuel duty subsidy in January 2012.” But Cussons is also deep in Asia and Australia (the Australian business has now returned to profit). Cussons shares were selling at a shade under 375p, some distance from 300p a year ago – that’s a 25% hike. PZ Cussons investors will see their interim dividend hiked +5.4% to 2.35p per share.