PZ Cussons (LON:PZC) Announces Earnings Results

PZ Cussons (LON:PZC) posted its quarterly earnings data on Thursday. The company reported GBX 4.70 earnings per share for the quarter, Digital Look Earnings reports. PZ Cussons had a negative net margin of 0.92% and a negative return on equity of 2.16%.

Here are the key takeaways from PZ Cussons’ conference call:

• FY2026 performance strengthened: Revenue rose 5.4% to £541 million, like-for-like growth was 5.8%, and adjusted operating profit increased 24.5% on a comparable basis, lifting the margin to 11%. Growth was reported across all four lead markets and the top 10 brands.
• The balance sheet improved materially. Free cash flow increased to £54.7 million and net debt fell from £112 million to £25 million, with adjusted leverage at 0.7x EBITDA; the board proposed a 2.8% dividend increase and highlighted flexibility for bolt-on acquisitions or further shareholder returns.
• Nigeria delivered 22% revenue growth, while measures to reduce dollar-denominated liabilities cut underlying operating-profit sensitivity to a 100-naira currency move from more than £7 million historically to about £1.5 million. Management also cited improving performance at St. Tropez in North America, Cussons Baby in Indonesia, and Childs Farm’s early U.S. expansion.
• Management confirmed FY2027 operating-profit expectations of £58 million–£61.2 million and said current trading is in line with expectations, although the prior year included a £5.4 million one-off Nigerian FX gain. The company expects a more balanced first-half/second-half profit split and lower net debt, with Middle East-related cost inflation expected to be largely offset by mitigation actions.
• Performance remains uneven, with soft U.K. growth, lower APAC operating profit, and impairments for the Charles Worthington and Fudge brands. Working capital was a £9 million cash outflow, partly due to building inventory amid geopolitical risks, while increased marketing investment continues to pressure regional margins.

PZ Cussons Trading Down 3.6%

Shares of PZC traded down GBX 3.90 during trading hours on Thursday, reaching GBX 104.50. 3,514,835 shares of the company traded hands, compared to its average volume of 1,704,774. The stock’s fifty day moving average price is GBX 100.91 and its 200 day moving average price is GBX 86.95. The company has a current ratio of 0.96, a quick ratio of 1.36 and a debt-to-equity ratio of 67.93. The firm has a market cap of £439.27 million, a price-to-earnings ratio of -89.32, a PEG ratio of 1.13 and a beta of 0.52. PZ Cussons has a 12-month low of GBX 65.09 and a 12-month high of GBX 114.

Wall Street Analyst Weigh In

Separately, JPMorgan Chase & Co. lifted their price target on shares of PZ Cussons from GBX 100 to GBX 110 and gave the stock a “neutral” rating in a research note on Thursday, June 18th. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of GBX 110.

About PZ Cussons

PZ Cussons plc manufactures, distributes, markets, and sells baby, beauty, and hygiene products in Europe, the Americas, the Asia Pacific, and Africa. The company offers toiletries, pharmaceuticals, electrical goods, edible oils, fats and spreads, nutritional products, shampoos, body washes, toothpastes, toothbrushes, skin and hair care products, food pouches, cereals, snacks, flavors, and fragrances; beauty soaps, lotions, wipes, creams, shower gels, foam-bursts, bar soaps, deodorants, bath infusions, handwashes, and conditioners; ointments; dishwashing liquids, dishwasher tablets, dishwasher gels, dishwasher capsules, rinse aids, liquid detergents, laundry soaps, and laundry solutions; and cooking and vegetable oils.