Higher prices and record Christmas gifting bolster sales for PZ Cussons

Consumer goods firm PZ Cussons has said its sales were boosted by higher prices and stronger Christmas gifting, despite its St Tropez brand continuing to struggle.

The Manchester-based maker of labels including Imperial Leather and Carex reported revenue growth for each of its 10 largest brands.

Total revenues increased by 9.5% in the six months to November 29, compared like for like with the same period a year ago.

In Europe and the Americas, revenues grew by 1.7%, driven by higher prices while the volume of sales dipped.

PZ Cussons said the UK market remained highly competitive with a “bifurcation of demand as many consumers seek even-better value and others remain willing and able to spend on everyday luxuries”.

Sales of Sanctuary Spa, which includes body and skincare products and a range of gift sets, grew by “double-digits” and was the primary driver of overall growth in the region, the firm said.

The uptick reflected a record high period of Christmas gifting and the expansion of products in shops.

Shower gel brand Original Source also surged following an advertising campaign, while its baby and kids skincare brand Childs Farm benefited from partnerships with Kellogg’s and animated TV series Bluey.

However, sales growth was offset by a decline for struggling self-tanning brand St Tropez, with sales plunging by 30% globally, excluding the US, over the half-year.

The group pulled out of efforts to sell St Tropez and said it was holding onto the brand last year, instead kicking off a turnaround under a new strategy.

Elsewhere, PZ Cussons said sales soared by about 28% in Africa, driven by a 15% increase in prices and a 13% jump in the volume of sales.

It is leading an overhaul of the division after also scrapping plans to sell it.

The company’s pre-tax profit soared by more than 50% year-on-year to almost £30 million.

Looking ahead to the full year, it said it was expecting adjusted operating profits to be between £53 million and £57 million, up from the previous £50 million to £55 million range.

Chief executive Jonathan Myers said: “We have delivered a strong performance in the first half of the year across our four lead markets.

“This performance, with a healthy balance of price and volume increases, and growth in each of our largest 10 brands, has been driven by targeted investment in innovation, brand-building and continued strong commercial execution.”