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PZ Cussons reports 8% LFL growth in FY25, sells PZ Wilmar stake to de-risk Nigeria exposure, holds dividend steady and refocuses St.Tropez strategy.
This article covers information on PZ CUSSONS PLC.
LON:PZCPZ Cussons has posted a year of steady operational improvement wrapped in some chunky strategic calls. On the face of it, reported revenue slipped 2.7% to £513.8 million as currency headwinds bit, but like-for-like (LFL) sales grew 8.0% as pricing in Africa and better execution in the UK and Indonesia did the heavy lifting. Adjusted operating profit eased 5.8% to £54.9 million, while statutory operating profit swung to £20.6 million from a loss last year.
Two headlines matter most for shareholders: the planned sale of the 50% stake in PZ Wilmar for $70 million to de-risk Nigeria exposure and pay down debt, and the decision to keep St.Tropez with a new game plan and US distribution partner. The dividend is held flat at 3.60p with a proposed final of 2.10p.
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | £513.8m | £527.9m | (2.7)% |
| LFL revenue growth | 8.0% | 4.4% | +360bps |
| Adjusted operating profit | £54.9m | £58.3m | (5.8)% |
| Adjusted operating margin | 10.7% | 11.0% | (30)bps |
| Statutory operating profit/(loss) | £20.6m | £(83.7)m | n.m. |
| Adjusted profit before tax | £41.1m | £44.7m | (8.1)% |
| Adjusted EPS | 7.34p | 8.02p | (8.5)% |
| Dividend per share | 3.60p | 3.60p | Flat |
| Free cash flow | £42.3m | £41.6m | +£0.7m |
| Gross debt | £157.1m | £166.6m | Improved |
| Net debt | £112.0m | £115.3m | Improved |
Quick jargon check: “LFL” strips out currency moves, disposals/acquisitions and calendar effects to show underlying sales momentum. “Adjusted” excludes one-offs like impairments to reflect trading performance.
Foreign exchange was the villain of the piece. Translating FY24 revenue at FY25 rates shaved an estimated £55.0 million off revenue, with the Nigerian Naira on average 38% weaker year-on-year. Strip out Africa and Group LFL was 0.3%, with volumes up 0.7% and price/mix down 0.4% – essentially stable.
Adjusted operating margin for the Group eased 30bps, but it actually rose 30bps if you exclude PZ Wilmar. That’s a useful tell: underlying margin work is paying off, helped by lower overheads from combining UK Personal Care and Beauty – annualised savings of about £3 million.
In June, PZ Cussons agreed to sell its 50% stake in the Nigerian edible oils joint venture, PZ Wilmar, for $70 million. Net proceeds are expected to be around $64 million (£47 million) after costs. Completion is targeted for Q4 calendar 2025. The deal trims non-core exposure and should materially reduce leverage. For context, PZ Wilmar contributed £7.1 million to adjusted operating profit in FY25 (down from £10.7 million).
After running a sale process, the Board chose to retain St.Tropez and chart a new course. The brand will be led by a focused, incentivised team, with a US reset via a partnership with The Emerson Group for customer management, logistics and activation. The plan aims to restore growth in the US after a tough year.
The wider Africa review continues, covering Family Care in Nigeria, Ghana and Kenya, and the Nigeria Electricals unit. No decisions disclosed yet.
Free cash flow was £42.3 million, slightly higher than last year, driven by better working capital. Net debt edged down to £112.0 million (from £115.3 million) and gross debt fell to £157.1 million. Headroom on the £325.0 million committed facility stood at £167.5 million.
The dividend is held at 3.60p, with a proposed final of 2.10p payable on 27 November 2025 to holders on 31 October 2025. For income investors, flat is respectable given FX volatility and the ongoing transformation.
The Group reports carbon neutrality across operations, a 31% reduction in Scope 1-3 emissions versus a 2021 baseline, and 86.1% of packaging now recyclable, reusable or compostable. Good operational hygiene that should support retailer and consumer traction.
Despite a messy FX backdrop, PZ Cussons is quietly getting fitter: better UK profitability, share gains in ANZ, a cleaner portfolio ahead, and steady cash generation. Guidance implies modest profit growth on a Wilmar-free basis and a healthier balance sheet after disposals. The dividend is steady. For me, execution on St.Tropez and continued currency stability in Nigeria are the two swing variables for FY26 sentiment.
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