Cussons washes its face

Announcing its financial results for the six months ended 30 November, Cussons reported a competitive trading environment in the UK with high levels of promotional activity particularly on shower gel and handwash products. It has undertaken significant new product launches across all UK brands with the more premium brands performing particularly well. Its African operations had experienced a broadly flat performance despite tight liquidity provision in the Nigerian economy; Asia had enjoyed a strong performance with growth in profitability in Australia, Indonesia and The Middle East while sales and profitability were lower in Greece due to the challenging economic environment there. Chairman Richard Harvey (pictured working with the charity Concern Universal in Africa) said: "The Group has delivered a robust performance in the first half despite challenging trading conditions in a number of markets. Continued renovation of our brand portfolio has played an important role in ensuring we can continue to trade competitively in the markets in which we operate. "Following completion of the Group's major capital projects last year we have pressed ahead with new opportunities, including the £62.5 million acquisition of the St Tropez brand, whilst still remaining in a net funds position. "Other strategic initiatives, such as the new joint venture in Nigeria with Wilmar International, are laying broader foundations for the Group's longer term ambitions." Pre-tax profit for the half year rose 3.4% to £46.2 million (30 November 2009: £44.7 million) on revenue up 1.3% to £374.8 million (30 November 2009: £369.9 million). Harvey concluded: "Whilst we remain cautious given continued challenging trading conditions and rising raw material prices, our outlook for the full year is broadly in line with expectations."