THE EASING of demand for Carex's personal hygiene products caused a 9.6 per cent slump in the brand's parent company PZ Cussons.

The personal healthcare giant reported yesterday that, in the half year ended 30 November, its adjusted operating profit went down to £32.9m whiles sales slumped 9.3 per cent to £283.7m. Earnings per share also dropped 15.4 per cent, going down from 6.67p to 5.64p.

"The first quarter decline was driven primarily by Carex lapping unprecedented demand for hygiene products at the peak of the Covid-19 pandemic in the prior year," commented PZ Cussons' boss Jonathan Myers.

In the second quarter the company picked up the pace following a 10 per cent growth of Must Win brands.

PZ Cussons's after tax profits almost doubled, going up to £27.9m, while basic earnings per share increased by 79.5 per cent.

"The results demonstrate our ability to use the strength of our brands to protect margins in the face of cost headwinds," Myers said.

The board decided to maintain its interim dividend at 2.67p, in line with the year prior, to reflect the group's confidence in the business momentum while taking into consideration financial headwinds.

"Commodity and freight costs show no sign of abating in the near term and we continue to anticipate cost pressures into 2023," Myers added.

(c) 2022 City A.M., source Newspaper