PZ Cussons H1 Earnings Call Highlights

Core Insights - PZ Cussons reported a strong financial performance in the first half of the financial year 2026, with broad-based revenue growth and improved operating profit, leading to an increase in adjusted profit before tax to GBP 30 million from GBP 20 million [1][4] Financial Performance - Adjusted operating profit rose to GBP 36 million from GBP 27 million, with an adjusted operating margin improvement of 240 basis points [2] - Like-for-like revenue increased by 9.5% to GBP 269 million, up from GBP 249 million in the prior-year period [3] - The company raised full-year adjusted operating profit guidance to GBP 53 million to GBP 57 million, up from GBP 50 million to GBP 55 million [16] Regional Performance - Revenue in Africa increased to GBP 79 million, with like-for-like growth of 28%, driven by pricing and volume recovery [9] - In the UK, revenue growth was supported by strong performance in gifting, particularly from the Sanctuary Spa brand, which grew 30% during the Christmas period [7] - APAC revenue was GBP 88 million, reflecting a 5.2% like-for-like growth, while the Americas business achieved its third consecutive quarter of revenue growth [8] Balance Sheet and Cash Flow - The balance sheet improved significantly, with net debt reduced to GBP 84 million, and leverage below 1x under new capital allocation guidelines [6][14] - Free cash flow for the half was GBP 23 million, with seasonal working capital outflows noted [13] Marketing and Strategic Initiatives - The company plans to increase marketing spend in the second half, the highest in 4-5 years, which is expected to impact profitability [5][18] - Management is focused on reducing sensitivity to foreign exchange fluctuations in Nigeria through recapitalization efforts [11] Dividend and Shareholder Returns - The interim dividend remains unchanged at GBP 0.05 per share, reflecting a cautious approach given the outlook for full-year earnings [17]