LONDON (ShareCast) - (ShareCast News) - Imperial Leather and Original Source maker PZ Cussons reported a drop in adjusted interim profit on Tuesday amid margin pressures and "tough" trading conditions.
In the six months to 30 November, adjusted pre-tax profit fell 15.4% to £34m, while adjusted operating profit dropped 10.3% to £37.5m as strong profitability in Asia was offset by reduced margins in some business units in Europe and Africa. Revenue edged up 1.9% from the same period a year ago to £385.4m, which the company attributed to a "strong and innovative" product pipeline.

Meanwhile, on a statutory basis, pre-tax profit was up 37.3% to £34.2m, with operating profit up 42.3% to £37.7m.

The interim dividend was maintained at 2.67p per share and PZ Cussons said profitability is expected to improve in second half as a result of further new product launches and distribution expansion.

Chair Caroline Silver said: "In the first half of the financial year, the group has faced tough trading conditions in many of the markets in which it operates, and whilst revenue was 1.9% higher than the previous period, adjusted operating profit was 10.3% lower as a result of reduced margins in certain business units in Europe and Africa.

"Initiatives are underway to improve performance of these business units and, together with the positive momentum elsewhere in the group and in particular in Asia, provide a solid basis for improved performance in the second half of the year.

"The group's brand portfolio remains strong and, with a strong balance sheet, the group is well placed to pursue growth opportunities."

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