PZ Cussons faces tough times but beauty and personal care brands grow

By

Sandra Halliday

Published
Sep 27, 2017

Consumers worldwide may be feeling more cautious generally but they’re still buying enthusiastically into the personal care segment, even if UK shoppers in particular are thinking carefully about everything they buy.

That’s affecting PZ Cussons, the company behind the Imperial Leather, Carex and Original Source brands, but it said ahead of its AGM Wednesday that it remains on track to deliver full-year growth in operating profits with performance underpinned by a “robust and innovative product pipeline and tight control of costs.” 

The tough trading conditions are being seen in “in most markets,” were evident in Q1 and are “expected to continue for the full year.”

In fact, it added that it’s increasingly clear consumers “are shopping cautiously reflecting general cost inflation outstripping wage growth, and broader economic uncertainty.”

However, in the Washing and Bathing division, which includes that trio of power brands, it said new product launches “have been well received,” although volumes remain “very sensitive to price points and discounting."

In the Beauty division, recent new product launches such as the new Sanctuary Being range have “performed well” over the summer.

It added that Personal Care performance has improved in Australia and in Indonesia, good growth has continued across both the core Cussons Baby range as well as from recent new product launches across Imperial Leather.

The company said the “business remains in good shape with market shares holding or growing in key categories,” and it expects brand initiatives, tight cost control and its “deep knowledge” of its markets to “provide a solid basis for the year ahead.”