		<div class="wpcnt">
			<div class="wpa">
				<span class="wpa-about">Advertisements</span>
				<div class="u top_amp">
							<amp-ad width="300" height="265"
		 type="pubmine"
		 data-siteid="111265417"
		 data-section="2">
		</amp-ad>
				</div>
			</div>
		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/01/cussons-squeezed-by-rising-costs.jpg"><img class="alignnone size-full" title="Imperial Leather maker PZ Cussons cautioned over its outlook as it grapples with the rising cost of key ingredients" src="http://londonglossy.com/wp-content/uploads/2011/01/min-cussons-squeezed-by-rising-costs.jpg" alt="Imperial Leather maker PZ Cussons cautioned over its outlook as it grapples with the rising cost of key ingredients"/></a></p>
<p>Imperial Leather maker PZ Cussons has cautioned over its outlook as it grapples with the rising cost of key ingredients and discounting by rivals.</p>
<p>The price of palm oil, which is used in many of its products, has shot up, while it faces consumer belt-tightening across key UK and European markets.</p>
<p>Its UK arm is also suffering from intense competition as rivals steal market share with heavy cut-price promotions on shower gels and handwash products.</p>
<p>The firm, which also owns Original Source, Charles Worthington and The Sanctuary spa range, revealed that the more difficult conditions contributed to a 5% fall in European operating profits to £23.7 million in the six months to November 30, a decline also driven by the eurozone debt crisis.</p>
<p>Richard Harvey, chairman of PZ Cussons, said full-year expectations were still in place but that current trading conditions and rising raw material prices meant the company remained cautious going forward.</p>
<p>The uncertain outlook prompted some analysts to reduce forecasts and led to a 9% slump in the company&#8217;s shares.</p>
<p>Experts at Panmure Gordon cut expectations for full-year pre-tax profits to £113 million from £117 million, adding: &#8220;The outlook for the year is &#8216;broadly in line with expectations&#8217;, but with raw materials having continued to rise and the consumer environment remaining difficult, we feel it is prudent to trim our full-year profit forecast.&#8221;</p>
<p>In Tuesday&#8217;s half-year figures, the group revealed underlying profits rose 3.4% to £46.2 million as a stronger Asian market offset the European woes.</p>
<p>Asian operating profits rose to £8.6 million from £6.1 million a year earlier, while earnings largely held firm in Africa at £13.7 million.</p>
<p>The UK figures were hit by tough comparatives from a year earlier, when the swine flu outbreak saw sales of its Carex anti-bacterial handwash soar.</p>
			<div style="padding-bottom:15px;" class="wordads-tag" data-slot-type="belowpost">
				<div id="atatags-dynamic-belowpost-68ee5dd6e653a">
					<script type="text/javascript">
						window.getAdSnippetCallback = function () {
							if ( false === ( window.isWatlV1 ?? false ) ) {
								// Use Aditude scripts.
								window.tudeMappings = window.tudeMappings || [];
								window.tudeMappings.push( {
									divId: 'atatags-dynamic-belowpost-68ee5dd6e653a',
									format: 'belowpost',
								} );
							}
						}

						if ( document.readyState === 'loading' ) {
							document.addEventListener( 'DOMContentLoaded', window.getAdSnippetCallback );
						} else {
							window.getAdSnippetCallback();
						}
					</script>
				</div>
			</div>
Discover more from London Glossy Post
Subscribe to get the latest posts sent to your email.
