PZ Cussons plc Annual Report and Accounts 2025
With over 140 years of heritage, we employ just under 2,500 people across our businesses
in Europe, North America, Asia Pacific and Africa. Since our founding in 1884, we have been
creating products to delight, care for and nourish consumers. We are building on these
foundations, transforming PZ Cussons into a business with stronger brands in a more
focused portfolio, delivering sustainable, profitable growth.
WE ARE A BRANDED
CONSUMER GOODS BUSINESS.
About Us
PZ Cussons plc Annual Report and Accounts 2025
Contents
Revenue
£513.8m
2024: £527.9m
Operating margin – Statutory
4.0%
2024: (15.9)%
Dividend per share
3.60p
2024: 3.60p
Revenue growth – Statutory
(2.7)%
2024: (19.6)%
Operating margin – Adjusted¹
10.7%
2024: 11.0%
Basic loss per share – Statutory
(1.38)p
2024: (13.60)p
LFL revenue growth¹
8.0%
2024: 4.4%
Net debt
£(112.0)m
2024: (£115.3)m
Adjusted basic earnings per share¹
7.34p
2024: 8.02p
Summary of Financial Performance
Read our report online:
www.pzcussons.com/investors
STRATEGIC REPORT
02 A Word from our Chair
03 PZ Cussons at a Glance
04 Chief Executive's Review
08 Business Model
10 Key Performance Indicators
12 Financial Review
16 People and Culture
20 Sustainability
26 Task Force on Climate-related
Financial Disclosures
30 Risk Management and
Principal Risks
40 Viability and Going Concern
42 Non-Financial
and Sustainability
Information Statement
43 Section 172(1) Statement
GOVERNANCE
48 Chair’s Introduction
to Governance
49 Governance at a Glance
50 Our Board
52 Our Executive
Committee
54 Board Activity at a Glance
56 Corporate Governance
Statement 2025
63 Nomination
Committee Report
66 Audit and Risk
Committee Report
72 Environmental and Social
Impact Committee Report
74 Remuneration
Committee Report
77 Remuneration at a Glance
78 Directors’ Remuneration
Policy
84 Report on the
Directors’ Remuneration
95 Report of the Directors
FINANCIAL STATEMENTS
100 Independent Auditor’s Report
108 Consolidated
Income Statement
109 Consolidated Statement
of Comprehensive Income
110 Consolidated Balance Sheet
112 Consolidated Statement
of Changes in Equity
113 Consolidated Cash
Flow Statement
114 Notes to the Consolidated
Financial Statements
164 Company Balance Sheet
165 Company Statement of
Changes in Equity
166 Notes to the Company
Financial Statements
ADDITIONAL INFORMATION
171 Alternative Performance
Measures
174 Glossary
175 Shareholder Information
Reported financial performance in FY25 was mixed, with strong results across most of our portfolio
offset by a significant decline in St.Tropez, and the impact of the weaker Nigerian Naira.
1 Alternative performance measures are explained and reconciled to the most directly comparable financial measure prepared in accordance with IFRS on pages 171 to 173.
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A Word from our Chair
I am pleased to present the Annual Report for
PZCussons for the year ending 31 May 2025.
FY25 PERFORMANCE
This was a mixed year for the Group. Our business in the UK increased its
sales and drove its operating profit up significantly, aided by improving
gross margins and by overhead cost reductions. Our African business
achieved strong revenue and profit growth in local currency terms in what
was a calmer macro-economic environment in Nigeria after the major
devaluation of its currency in FY24. However, its operating profit when
translated into Sterling increased only slightly because the Nigerian Naira,
while stable during the year, was on average 38% below that in FY24.
In APAC, our operating profit was slightly down despite the good sales
progress made in Indonesia and effective profit margin management in
Australia. We experienced, however, a significant fall in the operating
profits of our St.Tropez business in the US, affected by a difficult, more
competitive environment.
Our central costs increased slightly on a comparable basis. However,
measures were taken during the year to reduce them and these benefits
will be felt in FY26. Overall across the Group, we are targeting savings of
£5-10 million in FY26 as we simplify our processes and our organisation.
Our adjusted operating profit in FY25, declined by £3.4 million to £54.9
million which, with a higher effective tax rate but the benefit of lower
non-controlling interest, resulted in our adjusted earnings per share
decreasing by 8.5% in the year from 8.02p to 7.34p.
Our gross debt improved from £166.6 million to £157.1 million during the
year with working capital levels being kept under tight control. Net debt/
EBITDA increased from 1.5x to 1.7x reflecting the reduction in EBITDA.
DIVIDEND
All this has led the Board to propose a final dividend of 2.10p per
share following the interim dividend of 1.50p paid in April. If approved,
shareholders will receive a full year dividend of 3.60p per share –
unchanged on last year’s dividend. This annual dividend represents
49% of our earnings in the year and is in line with our targeted dividend
cover of approximately two times. Once we complete our portfolio
transformation plans, we plan to review our approach as part of a
broader assessment of the Group’s financial leverage and capital
allocation objectives.
PORTFOLIO TRANSFORMATION
Turning to our plans for portfolio transformation, we also had a mixed
year. We were pleased to agree a transaction to sell our 50% share in PZ
Wilmar, our edible oils business, to our joint venture partners, Wilmar.
Subject to relevant approvals, completion is expected to take place
in the last quarter of calendar year 2025. We wish the Wilmar team
continued success.
This sale will simplify our portfolio and reduce our exposure to the
risks of the Nigerian economy. We will use the net proceeds of
approximately £47 million to reduce our gross debt further.
On the other hand, we failed to find a buyer prepared to pay an acceptable
price for our St.Tropez business. During an extensive auction process, we
had a number of offers but the value of them was adversely affected by the
declining sales and profitability of the brand during the year.
As a result, the Board announced in June 2025 that the most compelling
path forward was to retain the brand but run the business in a different
way. We have now put in place a new, focused team led by a highly
experienced executive and established a new partnership in the US with
the Emerson Group, a leading distributor to North American retailers.
The transition to this new operating model and, in turn, the brand’s
improved trading momentum will be a key area of oversight for the
Board during FY26.
We also continue to review the future plans for our African businesses,
and we will update investors on those at the end of the process.
However, I can report that during the year, we again reduced our
exposure to the Naira by reducing the foreign currency borrowings of
our Nigerian business. This process will continue in the current year.
SUSTAINABILITY
We continue to progress our work on sustainability which remains
central to our strategy and purpose. In FY25, we were proud to achieve
carbon neutrality across our global operations, and the Group also
achieved a 31% reduction in Scope 1, 2 & 3 carbon emissions in FY25 vs
the FY21 baseline, supporting our progress towards our ambition for Net
Zero by 2045. The Board’s Environmental and Social Impact Committee
continues to monitor and advise on the projects which will best support
these ambitions, ensuring our environmental commitments are matched
by meaningful action and transparency.
PEOPLE
Our people are of course the beating heart of PZ Cussons and their skills
and commitment are critical to the success of the Group. This has been a
year of significant organisational change and uncertainty for many of our
teams as we transform PZ Cussons into a business with a more focused
portfolio. We were therefore particularly pleased to see that our internal
survey demonstrated a high level of employee engagement, with nine
in ten of our colleagues stating that they are proud to work for the
Group – a slight improvement on last year’s survey. The results, explored
in more detail later in this report, reflect the strength of our culture and
the huge internal goodwill which the Company enjoys.
On behalf of the Board, I would like to thank all our colleagues very much for
their dedication and hard work in what has been another challenging year.
In addition, I am also grateful to our customers, suppliers, shareholders and
other stakeholders for their continued support and trust in PZ Cussons.
THE FUTURE
Looking ahead, the Board will continue to focus on delivering
sustainable, profitable growth for the future. We plan to capitalise on
the long-term potential of our brands within a more focused portfolio.
David Tyler
Non-Executive Chair
16 September 2025
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PZ Cussons at a Glance
FY25 revenue split by priority markets
UK
Leading positions in Washing and
Bathing, with strong distribution
and in-house manufacturing
ANZ
Leading Homecare and Baby
Food brands, focused on
Australia’s two leading grocers
NIGERIA
Strong footprint in Family Care
with joint venture partnerships
in Electricals and Edible Oils
2
INDONESIA
Leading toiletries brand with
Cussons Baby
By region
35%
17%
21%
12%
15%
WE ARE A BRANDED
CONSUMER GOODS BUSINESS.
OUR PURPOSE AND STRATEGY
Our purpose is ‘For Everyone, For Life, For Good’.
Our strategy is ‘Building brands for life. Today and for future generations’. We focus on our core categories of Hygiene, Baby and Beauty in our four priority
markets of the UK, ANZ, Indonesia and Nigeria. Underpinning this strategy, our growth will be enabled by strengthening our approach to capabilities, talent
and leadership, culture and sustainability. Running through everything we do is a drive to dramatically reduce complexity across our business.
Investing in our brands
to drive awareness
and consumer loyalty
Winning where the
shopper shops
Simplifying our
operations and
portfolio to improve
returns and reduce risk
Investing in our
teams to strengthen
capabilities
Acting in the right way
for long-term growth
BUILD
BRANDS
SERVE
CONSUMERS
REDUCE
COMPLEXITY
DEVELOP
PEOPLE
GROW
SUSTAINABLY
1 Other revenue primarily relates to our operations in the US, Ghana and Kenya, and other markets accessed through distributors.
2 The sale of our PZ Wilmar edible oils joint venture was announced in June 2025.
OTHER
1
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Chief Executive’s Review
PZ Cussons is now firmly in the
transformation phase of its
journey – reshaping itself into a
more focused, competitive and
resilientbusiness.
Our strategy remains centred on the core categories of Hygiene,
Baby and Beauty and we continue to invest in building brands, while
simplifying our operations and creating a future-fit organisation.
FY25 has been a year of continued progress against our strategy. The
UK business has delivered a stronger profit performance, supported by
successful innovation, improved execution and strong retail partnerships.
Indonesia has now recorded a fifth consecutive quarter of revenue
growth, and ANZ continues to gain market share in each of its main
brands, despite a softer consumer backdrop.
Across the Group, we are also seeing the benefits of our new operating
model. Funded by a reduction in Group overheads, this is enabling
more competitive brand activation and a clearer, more robust
innovation pipeline. Major launches such as the Carex campaign in
Africa, or the Childs Farm re-stage in the UK are early markers of
success. Furthermore, we see continued opportunity to replicate the
success enjoyed so far with our partnerships with third party owners of
Intellectual Property (IP) such as Bluey or Gruffalo, with which a number
of our brands share a target consumer.
In Nigeria, while the macro-economic environment remains challenging,
the Naira (the Nigerian currency) has shown greater stability in recent
months. Our operational interventions have helped sustain trading
momentum and the business is now self-sufficient in US Dollar funding.
Firstly, we repatriated all surplus cash to pay down UK borrowings,
and subsequently we reduced a number of intercompany liabilities.
As a result, our exposure to future shocks has been greatly reduced.
Furthermore, shortly following the end of the financial year, we
announced the sale of our 50% stake in the PZ Wilmar edible oils joint
venture. This sees us exit a non-core category, reduce the risk associated
with our presence in Nigeria, and materially strengthens our balance
sheet. We also announced in June the decision to retain St.Tropez.
This ended the auction process that we had been conducting which
had been made challenging by the significant reduction in revenue
and profitability of the brand throughout the year.
We are however confident in the new direction that has been set for
the brand, with a renewed operating model built around a focused and
incentivised team with the brand leader reporting directly to me, and a
re-set of our ‘go to market’ capabilities in the US aided by our strategic
partnership with The Emerson Group – a leading, US-based partner to
brand owners.
The strategic review of our wider Africa business is ongoing. This
comprises our Family Care businesses in Nigeria, Ghana and Kenya, and
our Electricals business in Nigeria. We remain committed to maximising
long-term shareholder value and will provide an update as appropriate.
Finally, in a year of significant organisational change and uncertainty for
many of our employees, I am particularly pleased to be able to report an
employee engagement score of 74%. This represents an increase from
73% in FY24, and compares favourably to an industry benchmark of 71%.
We know there is more to do to fully transform PZ Cussons, but with the
strategic actions and operational improvements delivered through 2025,
we are confident in the long-term potential for the Group. On behalf
of the Board, I would like to thank our teams across the world for their
continued energy and commitment, and our partners and customers for
their ongoing support.
We know there is more to do to fully transform
PZ Cussons, but with the strategic actions and
operational improvements delivered through
2025, we are confident in the long-term
potential for the Group.”
Jonathan Myers
Chief Executive Officer
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LFL revenue growth
8.0%
Reduction in waste to landfill
1
1 Compared to FY21 baseline.
88%
Stores served directly in Nigeria
200,000
DELIVERING AGAINST FY25 STRATEGIC PRIORITIES
Progress against the three key priorities established for FY25 is as follows:
1. Drive our businesses in the UK, Indonesia and ANZ
In the UK, we delivered a stronger profit performance with better innovation
and commercial execution. Improved executions around gifting occasions
across Christmas 2024, Mother’s Day and Valentine’s Day contributed an
additional c.£3 million of revenue in the year. Distribution of our brands
continued to expand, with successful launches for Sanctuary Spa in
Tesco, Waitrose and Asda, while Carex and Imperial Leather gained in
the wholesale and discounter channels. Childs Farm saw distribution expand
further, supported by the launch of a strategic partnership with Bluey and
BBC Studios, enhancing brand visibility and consumer engagement.
Product development included the Original Source 2in1 foam product
while Carex replicated the success of its Gruffalo product with an expansion
of its partnership with Magic Light Pictures to use Zog on products.
In Indonesia, the business recorded its fifth consecutive quarter of
revenue growth. We see continued growth following the launch in
FY24 of Cussons Baby into the warming oil segment – a very large and
important part of the wider Baby Care category in which the brand has
not historically been present.
Driven by a successful ‘360’ marketing campaign, involving TV, digital
media and shopper trials, and with distribution now reaching over
150,000 outlets, brand penetration has reached 9% compared
to 2% as at the end of FY24. More broadly, we see continued growth
in e-commerce which doubled in FY25 to represent approximately
8% of the total business.
In ANZ, we delivered further market share gains across Morning Fresh,
Radiant, and Rafferty’s Garden. Radiant became the third-largest
laundry brand in Australia, underpinned by the successful launch of
capsule innovation. Morning Fresh retained its leadership position with
approximately 50% category share, while Rafferty’s Garden continued
to hold the number 1 position in baby food.
2. Strengthen our brand-building capabilities and embed our
new operating model
During the year we completed the integration of our UK Personal Care
and Beauty businesses. This has delivered c.£3 million in annualised
savings, enabling faster, more consistent execution across commercial
and operational activities and was a primary driver of the reduction in
Group-wide overheads.
As part of our new operating model, during FY25, we began the roll
out of a renewed Marketing and R&D ‘flywheel’ to all business units.
With renewed clarity and consistency on our brand-building tools and
frameworks, we expect to drive more consistent and impactful brand-
building across our portfolio. In the second half of the year, we launched a
re-stage of Childs Farm generating strong consumer engagement. This
has reinforced the strength of our brand equity, and we expect this
to benefit performance into FY26. Other innovations for FY26 are set
to include Cussons Baby in Indonesia, Original Source in the UK, and
Morning Fresh in ANZ.
We are now in the final stages of integrating Childs Farm into the
business. The majority of manufacturing now takes place in-house
and the day-to-day running of the brand is led solely by our UK team,
allowing us to consolidate the number of points of interaction with
suppliers and customers.
3. Deliver the portfolio transformation to maximise
shareholder value
We announced in April 2024 our intention to refocus the PZ Cussons
portfolio on where the business can be most competitive and where it
can create most value for shareholders.
In June 2025, we announced the sale of our 50% stake in the PZ Wilmar
edible oils joint venture for $70 million, to the joint venture partner, Wilmar
International Limited. The transaction, once complete, will see us exit
a non-core category, simplify our portfolio, and significantly reduce our
financial leverage.
During the year, the Group ran a competitive auction process which
sought to sell the St.Tropez brand. After careful evaluation of the offers
received, the Board announced in June 2025 its intention to retain
St.Tropez and set a new strategic direction for the brand.
The plan sees us establish a focused team to lead the St.Tropez brand
across the Group’s international footprint, incentivised against the
identified value drivers of the business: winning in-market execution
including digital activation, re-igniting innovation and rejuvenating the
brand’s equity. A critical component of the plan includes the formation
of a strategic partnership with The Emerson Group (Emerson). Emerson
is a leading, US-based partner to brand owners and will provide
customer management, logistics services and brand activation in the US.
St.Tropez will be integrated into Emerson’s dedicated selling teams to
key US retailers – an arrangement which builds on PZ Cussons’ existing
relationship with Emerson as the distributor of Childs Farm in the US.
We are confident that this partnership will return St.Tropez to growth
in the US, combining Emerson’s distribution reach and brand activation
capabilities, with the brand equity of St.Tropez.
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GROWING SUSTAINABLY
We continue to make strong progress in embedding sustainability
across our operations, brands and culture. In FY25, we delivered
a step-change in our environmental performance, exceeding our
near-term targets and reinforcing our commitment to long-term
responsible growth.
• We achieved carbon neutrality across our global operations,
including Africa, in line with our 2025 target;
• We reported a 31% reduction in Scope 1, 2 and 3 compared to our
2021 baseline, supporting our ambition to reach net zero across all
scopes by 2045;
• Virgin plastic intensity was reduced by 12.5% compared to our 2021
baseline, continuing our trajectory toward a one-third reduction
by 2030;
• 86.1% of our packaging is now recyclable, reusable or compostable,
up from 85.6% in FY24;
• We achieved an 88% reduction in waste to landfill compared to
our FY21 baseline, with our UK operations maintaining zero waste
to landfill;
• Water consumption per tonne of finished product was reduced by
29% compared to our FY21 baseline.
Jonathan Myers
Chief Executive Officer
16 September 2025
Chief Executive’s Review continued
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Business Model
Our competitive advantage
Our strength is in being a multi-local rather than multi-
national business, with the level of focus, experience
and dedication to our priority markets that this brings.
Our brands
High-quality, trusted and well-loved brands
Our people
Diverse, skilled and engaged employees
Our channels
Leading manufacturing facilities and
strong customer partnerships
We are a branded consumer goods business, and
we build brands ‘For Everyone, For Life, For Good.’
What we do
ALL UNDERPINNED BY OUR PURPOSE,
CULTURE, VALUES, GOVERNANCE AND ETHICS
MACRO-ECONOMIC
ENVIRONMENT
Inflationary pressures have eased in some markets, but cost-of-living challenges persist, particularly in the
UK and Nigeria. Consumer value-seeking behaviour continues to shape demand, requiring agile pricing and
promotional strategies.
TREND FY25 CONTEXT AND IMPLICATIONS
Consumers and investors are demanding more from brands – ethical sourcing, transparency, and
sustainability are now baseline expectations. Our brand-specific sustainability plans and UN Global
Compact membership reinforce our commitment.
Despite short-term volatility, long-term growth potential remains strong in Nigeria and Indonesia. Nigeria’s
population growth and Indonesia’s expanding middle class present opportunities, though foreign exchange
(FX) volatility and supply chain resilience remain critical.
Omnichannel is now the norm. In developed markets, digital engagement and e-commerce are essential,
while in developing markets, modern trade continues to gain ground. Our investment in omnichannel
capabilities and data-driven marketing is key to winning.
DEVELOPING MARKETS
CHANGING CONSUMER
BUYING HABITS
EVOLVING STAKEHOLDER
EXPECTATIONS
Trends affecting our business
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Our business model creates shared, sustainable value for all our stakeholders.
FOR CONSUMERS
Innovative, high-quality and
trusted brands
FOR EMPLOYEES
Engaged teams, training and development
opportunities and a supportive culture
FOR SOCIETY
Supporting communities that we serve with
charitable initiatives linked to our purpose
FOR CUSTOMERS
Our retail partners and customers benefit
from selling our leading brands
FOR INVESTORS
A business with a more focused
portfolio and stronger brands, delivering
sustainable, profitable growth
FOR THE ENVIRONMENT
Sustainable sourcing on plastic, paper and
palm oil, with reduced carbon emissions,
water usage and landfill waste
The value we create
TREND FY25 CONTEXT AND IMPLICATIONS
Generative AI and digital tools are reshaping how we operate – from marketing to supply chain.
We are embedding AI into decision-making and exploring automation to drive efficiency and innovation.
Winning in key channels is a strategic imperative. Growth is being driven by grocers, e-commerce, and
discounters. Our future plans reflect a sharper focus on channel-specific strategies and execution excellence.
Our environmental commitments are accelerating. We’ve achieved a 68.7% reduction in Scope 1 and 2
emissions and 86.1% of packaging is now recyclable, reusable, or compostable. Sustainability is now
embedded in brand innovation and supply chain decisions.
CHANNEL DISRUPTION
SUSTAINABILITY
RAPIDLY CHANGING
TECHNOLOGIES
Trial and loyalty
Delight consumers through the use
of our products
Sales and distribution
Deliver our products to wherever
our shoppers shop
Advertising and marketing
Invest in multi-channel campaigns
to build brands
Insight and innovation
Generate consumer insights to develop
products that consumers desire
Sourcing and manufacturing
Produce high-quality finished products
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