revenue growth
—
FY 2023
management framework
PZ CUSSONS PLC
Last · LSE£1.034+0.004 (+0.39%)stale · yahoo · 203h ago
Market cap£435.7M421.3M sh
P/E · TTM20.7fwd 12.6 · eps 0.05
Beta0.53vs S&P 500
Div yield3.59%annual · TTM
52w range
£0.6509£1.14
Volume1.0Msession
| Revenue | £513.8M |
|---|---|
| Operating income | £20.6M |
| Net income | £-5.8M |
| Free cash flow | £16.6M |
| Operating margin | 4.0% |
| Net margin | -1.1% |
| Return on equity | -2.6% |
| Period | 2025 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Improving regional margins, brand momentum and at-least-in-line profit expectations outweigh still-elevated volume and emerging-market risks.
Buy: PZ Cussons delivered a sixth consecutive quarter of growth, with Q3 like-for-like revenue up 6.2% and reported revenue up 13.5%; Europe & the Americas returned to strong growth, while Childs Farm remains on track for double-digit FY revenue growth. The key tension is that growth is increasingly mix- and innovation-led rather than pure pricing, with second-half volumes still down roughly 5% and Indonesia’s baby category shrinking about 10%.
Themes
- Q3 Trading Update
- Price Mix
- Europe Americas Margin
- Childs Farm
- Nigeria Competition
- Indonesia Baby
Near term
Europe & the Americas’ second-half margin is expected to be in line with FY2022, implying a high-teens margin and a meaningful recovery from H1.
St Tropez US growth, Carex stabilisation, and Imperial Leather/Cussons Creations high-single-digit growth should support FY exit momentum.
The July Childs Farm analyst event may provide evidence that the acquisition can sustain double-digit growth and generate further brand expansion.
Nigeria could benefit from Unilever’s planned withdrawal from home and personal care categories, although execution and currency volatility remain risks.
Longer term
The strategy is gaining traction: core hygiene, baby and beauty revenue growth accelerated from 6% in H1 to 8% in Q3, while must-win brands improved from 2% to 6%.
Innovation-led premiumisation and adjacent-category expansion, including Morning Fresh into auto-dish and Childs Farm into sleep products, could broaden the growth runway.
Margin recovery depends on sustaining pricing, mix and promotional discipline after the easier cost environment and lower marketing investment provided a near-term benefit.
Competitive strength in Nigeria is improving, but the market’s structural difficulty remains relevant despite Unilever’s exit.
Red flags
Second-half volume decline remains around 5%, increasing reliance on price/mix, innovation and promotional optimisation as the window for straight price increases closes.
Indonesia’s baby category has declined about 10%, with weaker consumer and distributor demand; management is protecting share and profit but did not quantify a recovery timeline.
The Europe & Americas full-year margin is still expected to contract by roughly 3-4 percentage points versus FY2022, largely due to Carex weakness and prior brand investment.
Management’s FY adjusted profit-before-tax outlook was only 'at least in line with current market expectations,' without a quantified upgrade.
Forward outlook
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest ANNUAL · 2024-10-25
- Net Margin Sharply Negative
Red flags
- Net Margin Sharply Negative — Net margin -10.8%
Earnings transcripts
- Issuer webcast
Broadcast Recording
PZ CUSSONS PLC
- Issuer webcast
Broadcast Recording
PZ CUSSONS PLC
- Issuer webcast
Broadcast Recording (High Resolution)
PZ CUSSONS PLC
- Issuer webcast
Broadcast Recording (High Resolution)
PZ CUSSONS PLC
- Issuer webcast
Broadcast Recording (High Resolution)
PZ CUSSONS PLC
- Issuer IR
Broadcast Recording
PZ CUSSONS PLC
Documents
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