PZ Cussons profits lifted by brand innovation

The owner of soap brands Imperial Leather and Carex said its European profits rose 13 per cent after the launch of new products boosted trading.

Manchester-based PZ Cussons said "excellent brand innovation" helped it to offset high levels of promotional activity and an uncertain consumer outlook.

The company, which also owns Original Source and haircare brand Charles Worthington, posted operating profits of 46.2m in Europe for the year to May 31, up from 40.9m even though revenues fell 2.5 per cent to 280.8m.

Cussons said yesterday that Imperial Leather – the largest brand in its UK portfolio – continued to deliver new formats in soap, handwash and shower gel, including a sensitive skin product with a formula that allows fragrance to be added.

The company's other big operation is in Nigeria, where political and economic uncertainty has affected the business.

Revenues for the region fell nine per cent to 325.2m but operating profits still improved seven per cent to 42.2m.

Across the group, which also has a strong presence in Asia, profits rose by more than City expectations to 101.8m, a gain of nearly 15 per cent.

Despite the improvement, shares dropped as investors reacted to cautious comments from the company and closed 168p down at 343.9p.

It said: "We remain conscious of the competitive trading environment and fragile consumer confidence, particularly in the UK and Greece."