St Tropez maker healthcare products maker PZ Cussons has warned of challenging months ahead due to surging input costs and consumers coming under pressure from the rising cost of living.
The warning came alongside a third-quarter trading update wherein the owner of the brands like Carex, St Tropez, and Original Source saw its like-for-like revenue climb 8.5 percent over the 13 weeks to 28 February.
This was driven by higher prices to offset cost headwinds, with volumes “maintained”.
Chief Executive Jonathan Myers informed that input costs have continued to escalate in recent weeks, due to which household budgets will soon come under pressure.
“Our teams are working hard to address both of these dynamics. We are removing costs that the consumer does not value, and have plans in place to meet evolving consumer needs, including innovation to offer everyday great value as well as more premium-priced launches.”
“While the coming months will continue to be challenging for us and the wider consumer goods sector, the strength of our brands and our strategic progress gives me confidence in the long-term prospects for the business,” Myers said.
The growth came after a decline in revenue and profit for the first six months of its financial year when demand for its hand sanitation products returned to more normal levels following unprecedented sales during the peak of the pandemic.
Year-to-date like-for-like revenue growth was now running 1.3 percent, with core ‘Must Win Brands’ improving to flat year-on-year, and up by 12.6 percent in the same quarter prior to the start of the pandemic in 2020, PZ Cussons noted.
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