Soapmaker sees demand boom as beauty business fades
PZ Cussons forecasts full-year profit at lower end of range
PZ Cussons is seeing “exceptionally high” demand for its Carex hand wash. Photograph: Jason Alden/Bloomberg
Britain’s PZ Cussons is seeing “exceptionally high” demand for its Carex hand wash, sanitiser gels and Imperial Leather soap due to the coronavirus pandemic, the company said on Thursday, while flagging a slowdown in its beauty business.
The beauty business has been “severely” affected by the coronavirus crisis, with demand for fake tanning products slumping amid social distancing measures.
The group said its beauty ranges in the UK have been hit as retailers focus on hygiene and personal care, as well as the closure of hair salons.
The company, which recently tapped Avon Products executive Jonathan Myers as its top boss, also said its full-year profit forecast was at the lower end of the consensus range.
It forecast a slow recovery in the beauty unit as retailers are now stocking up hygiene and personal care products rather than cosmetics.
Overall revenue in the third quarter ended February 29th fell year-on-year, it said, adding that the impact of coronavirus and the restrictions imposed to prevent its spread remained significant.
It said PZ Cussons’ key manufacturing sites around the world remain open despite the restrictions. – Reuters