PZ Cussons – hopefully you were lathered up, caring products group reports tomorrow and the figures will be good, shares up nearly 30% in six weeks, with more to come

Mark Watson-Mitchell 

It could well be worth taking another look at the shares of PZ Cussons (LON:PZC) ahead of the group declaring its 2026 results tomorrow morning. 

On Friday, 12^th June, I stated in this column that I had a good feeling that this group’s shares, then trading at around the 87.50p level, were priming themselves for an upward push over the 100p barrier, and then to trade the 110p to 125p price range.  

Six weeks later, on Thursday, 30^th July, they hit 113.60p, since when they have eased back to 106.40p, perhaps in some nervousness ahead of the group announcing its Finals. 

We have already been given some positive news from the £456m-capitalised ‘caring products’ group, so its shares could well show some additional price momentum after tomorrow’s report. 

The Business 

The Manchester-based consumer goods business employs some 2,000 people internationally.  

Since its founding in 1884, it has been creating products to delight, care for and nourish consumers.  

The group is focused on its lead markets of the UK, ANZ, Nigeria and Indonesia across the core categories of Personal, Home and Baby Care.  

The principal activities are the manufacture and distribution of soaps, detergents, toiletries, beauty products, pharmaceuticals, electrical goods, edible oils, fats and spreads and nutritional products.   

Its ‘locally-loved’ brands include Joy, Carex, Childs Farm, Cussons Baby and Cussons Kids, Fudge Urban, Haier, Imperial Leather, Morning Fresh, Original Source, Premier Cool, Rafferty’s Garden, Sanctuary Spa, Stella, St.Tropez, Thermocool, Venus for You, and Charles Worthington. 

The Europe & the Americas and Asia Pacific segments are engaged in the sale of hygiene, beauty, and baby products.   

Its Africa segment is engaged in the sale of hygiene, beauty, and baby products, as well as electrical products.   

While its Central segment comprises the activities of its in-house fragrance business.   

Trading Update 

On Wednesday, 17^th June, the group issued a Trading Update for its year to end-May, stating that it anticipated reporting like-for-like revenue growth of approximately 6% for that year, with reported revenue around £540m, driven by broad-based performance across its four lead markets.  

The company has upgraded its FY26 adjusted operating profit guidance to be at or slightly above the upper end of the previously stated £53-57m range, an increase from the initial £48-53m. 

Net debt is expected to be below £30m, a reduction of over £80m from FY25 due to the sale of its stake in the PZ Wilmar joint venture, and the group noted that it has implemented measures to mitigate Naira volatility. 

Outlook 

Looking ahead to FY27, the group stated that it is mindful of the potential impact of the conflict in the Middle East and that it has already taken actions which are expected to offset a large majority of any cost inflation.    

The Equity  

There are some 428.72m shares in issue.  

The larger holders include FIL Investment Advisors (UK) (9.78%), Heronbridge Investment Management (7.27%), Liontrust Portfolio Management (4.90%), JB Zochonis Settlement for Nephews & Nieces (4.65%), Lindsell Train (4.36%), FIL Investments International (2.80%), JO Hambro Capital Management (1.80%), Premier Fund Managers (1.39%), Norges Bank Investment Management (1.19%), Hargreaves Lansdown Fund Managers (1.13%), UBS Asset Management Switzerland (0.89%) and Schroder Investment Management (0.82%). 

Brokers Views  

Five sets of researchers closely follow the business, four of whom call the shares a Buy and the fifth rates as a Hold. 

The consensus average Target Price is 121.50p, with the Lowest set at 110p and the Highest at 131p.  

Analyst Sahill Shan, at Singer Capital Markets, has recently upped his Target Price on his Buy rating from 118p to 131p. 

For the year now underway Shah looks for £561.8m revenues, £54.1m profits, 8.0p earnings and 3.99p per share in dividend, with net debt falling to only -£10.1m.  

The year to end-May 2028, he estimates, could show £584.9m sales, £60.5m profits, 8.9p earnings and 4.48p in dividend, while the group switches impressively into £17.0m net cash at bank at the year end.  

My View 

I am pleased with my early June profile on the group and its prospects – with the shares up 23% in two months. 

However, now at 106.40p, I still consider that they should be trading in the 110p to 125p price range – hopefully the Finals due out tomorrow morning will give some extra impetus.

(Profile 12.06.26 @ 87.50p set a Target Price of 110p*)