Imperial Leather-based and Carex maker PZ Cussons has reported a drop in annual income because it stated price inflation and the affect of shopper cutbacks impacted its efficiency.
The enterprise posted pre-tax income of £66.6 million for the 12 months to Might 31, a 2.9% drop from £68.6 million a 12 months in the past. Nonetheless, income have been forward of market expectations, the group stated.
It additionally noticed its revenues ease again from £603 million to £593 million over the 12 months.
Price inflation hit report ranges with uncooked materials costs and freight prices spiking, resulting in an round 11% enhance in the price of gross sales in comparison with the prior 12 months – or £40 million extra – PZ Cussons stated.
Nonetheless, the group stated it was in a position to offset worth rises by pushing by means of worth modifications and value initiatives all year long.
PZ Cussons has delivered a resilient efficiency over the previous 12 months, towards the backdrop of difficult situations in our marketsJonathan Myers, chief govt
Rising costs additionally had a knock-on affect on shopper spending with households dealing with squeezed budgets towards larger residing prices.
The corporate stated it's working exhausting to avoiding passing larger prices of logistics and provide chains on to shoppers.
Chief govt Jonathan Myers stated: “PZ Cussons has delivered a resilient efficiency over the previous 12 months, towards the backdrop of difficult situations in our markets.
“We now have achieved this by means of our technique to spend money on our manufacturers, specializing in the core classes.
“Whereas there may be a lot extra to do and the exterior setting stays difficult, we've made a very good begin to the present monetary 12 months and proceed to see important long-term alternatives forward as we construct in direction of the next development, larger margin, less complicated and extra sustainable enterprise.”
The enterprise stated it expects to ship its subsequent full-year outcomes in keeping with expectations, regardless of the difficult financial setting.