PZ Cussons Narrows Profit Guidance Amid US Sales Slump for St Tropez Brand

PZ Cussons has narrowed its profit guidance due to subdued demand in the US for its St Tropez tanning brand, with adjusted operating profits now expected to be between £52-55mln. The company's UK division recorded an additional £2mln in costs related to the Extended Producer Responsibility scheme. Despite this, PZ Cussons expects to post an 8% rise in annual like-for-like sales and reported turnover of around £505mln.

PZ Cussons, a leading personal care group, has announced a revised profit outlook for the year ending 31 May 2025, citing subdued demand for its St Tropez tanning brand in the US and additional costs related to the Extended Producer Responsibility (EPR) scheme in the UK. The company expects adjusted operating profits to be between £52 million and £55 million, down from the previously stated range of £52 million to £58 million [1][2].

The primary driver for the profit reduction is the softer performance of St Tropez in the US, which contributed to a double-digit decline in sales for the brand. Additionally, the UK business faced an extra £2 million in EPR costs, impacting overall profitability [1][2].

Despite these challenges, PZ Cussons reported like-for-like sales growth of 8% and total turnover of around £505 million for the year. The company's CEO, Jonathan Myers, attributed the growth to strong performance in Africa and good growth in the UK, which offset the decline in St Tropez sales [1][2].

In a strategic move, PZ Cussons has sold its 50% stake in PZ Wilmar, one of the largest sustainable palm oil businesses in Nigeria, to its joint venture partner Wilmar International for $70 million (£51 million). The proceeds from this sale will be used to reduce gross debt and strengthen the company's balance sheet [1][2].

Looking ahead, PZ Cussons is committed to transforming its portfolio and exiting non-core categories, such as its presence in Nigeria, to focus on stronger brands and deliver sustainable profitable growth [1][2].

References:
[1] https://www.thegrocer.co.uk/news/pz-cussons-flogs-african-palm-oil-business-but-epr-rules-in-uk-hits-profits/705803.article
[2] https://finance.yahoo.com/news/pz-cussons-narrows-profit-guidance-110704640.html