PZ Cussons Plc (PZC.L) | Investment Case

1. Company Snapshot

1.a. Company Description

PZ Cussons Plc manufactures, distributes, markets, and sells baby, beauty, and hygiene products in Europe, the Americas, the Asia Pacific, and Africa.It offers toiletries, pharmaceuticals, electrical goods, fats and spreads, nutritional products, shampoos, body washes, toothpastes, toothbrushes, skin and hair care, food pouches, cereals, snacks, flavors, and fragrances; beauty soaps, lotions, wipes, creams, shower gels, foam-bursts, bar soaps, deodorants, bath infusions, handwashes, and conditioners; dishwashing liquids, dishwasher tablets, dishwasher gels, dishwasher capsules, rinse aids, liquid detergents, laundry soaps, and laundry solutions; and cooking and vegetable oils.The company also provides refrigerators, freezers and air conditioners, washing machines, microwaves, table and standing cookers, generators, stabilizers, TVs, DVDs, and home theatres.

It sells its products under the Cussons Kids, Rafferty's Garden, Cussons Baby, St.Tropez, Sanctuary Spa, Fudge Professional, Charles Worthington, Fudge Urban, Venus for You, Carex, Imperial Leather, Original Source, Premier Cool, Joy, Premier Cool, Haier Thermocool, Morning Fresh, Bayley's of Bond Street, Canoe, Zip, Robb, Radiant, Mamador, and Devon King's brand names.The company was formerly known as Paterson Zochonis Plc and changed its name to PZ Cussons Plc in 2002.PZ Cussons Plc was incorporated in 1884 and is headquartered in Manchester, the United Kingdom.

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1.b. Last Insights on PZC

Recent positive drivers for PZ Cussons Plc include solid growth in key markets, as highlighted in the H1 2025 earnings call, despite currency headwinds impacting overall profitability. The company's ability to navigate growth amid challenging currency conditions is a testament to its resilience. Additionally, PZ Cussons' inclusion in the FTSE 100 blue-chip index, replacing Vistry, is a positive development, indicating the company's growing stature in the UK market. An intrinsic calculation suggests the company is 49% undervalued, with a fair value estimate of UK£1.75, implying potential upside for shareholders.

1.c. Company Highlights

Last Price	76.4
Change Percentage	3.10%
Open	75.9
Previous Close	74.1
Market Cap ( Millions)	320
Volume	441051
Year High	91.7
Year Low	65.09
M A 50	75.93
M A 200	76.15

FCF Yield	5.18%
Dividend Yield	4.71%
ROE	-2.46%
Debt / Equity	78.29%
Net Debt / EBIDTA	244.51%
Price To Book	1.46
Price Earnings Ratio	-55.16
Price To FCF	19.3
Price To sales	0.62
EV / EBITDA	8.62

2. PZ Cussons FY2025 Earnings Review

PZ Cussons reported a mixed financial performance for FY2025, with group revenue declining by GBP14 million to GBP514 million, largely due to foreign exchange impacts. However, like-for-like growth was robust at 8%, driven primarily by pricing actions in Nigeria. Adjusted operating profit decreased by 6% to GBP55 million, with a margin contraction to 10.7%. Earnings per share (EPS) came in at 0.0584, beating analyst estimates of 0.055. The company's strategic actions, including cost savings and brand initiatives, are expected to drive future growth.

Publication Date: Sep -18

📋 Highlights

Regional Performance

The UK business improved profitability through cost control and effective brand campaigns, such as the "Nature Hits Different" initiative for Original Source. Indonesia delivered its fifth consecutive quarter of growth, with Cussons Baby achieving 10% penetration in urban areas. Africa's revenue fell by 7% due to naira depreciation, but operating profit margins expanded by 250 basis points. The sale of the Wilmar stake is expected to reduce net debt to less than 1x EBITDA.

Strategic Initiatives

PZ Cussons is focusing on strategic initiatives, including the sale of its 50% stake in PZ Wilmar, retaining St. Tropez with a new US partner, and enhancing brand integration. The company is also pursuing cost savings of GBP5-10 million and has generated GBP42 million in free cash flow. The Board proposed a final dividend of 2.1p/share, maintaining the annual total at 3.6p.

Valuation and Outlook

With a dividend yield of 1.97%, PZ Cussons offers an attractive return for income-focused investors. The company's guidance for FY2026 includes like-for-like revenue growth of around 10% and adjusted operating profit in the range of GBP48-53 million. As the company continues to execute its strategic plans, investors will be watching for progress on cost savings, brand growth, and debt reduction.

3. NewsRoom

PZ Cussons (LON:PZC) Will Pay A Dividend Of £0.021

Sep -20

Source:

PZ Cussons PLC (STU:1ZQ) Full Year 2025 Earnings Call Highlights: Strategic Moves and Market ...

Sep -19

Source:

PZ Cussons Full Year 2025 Earnings: UK£0.014 loss per share (vs UK£0.14 loss in FY 2024)

Sep -18

Source:

PZ Cussons back in profit but admits ‘more to do’ in revamp

Sep -17

Source:

PZ Cussons pulls out of auctioning off self-tanning brand St Tropez

Jun -26

Source:

Is PZ Cussons plc (LON:PZC) Trading At A 50% Discount?

Jun -26

Source:

Wilmar to buy PZ Cussons’ stake in Nigerian edible-oils JV

Jun -18

Source:

PZ Cussons narrows profit guidance and sells stake in Nigerian palm oil firm

Jun -18

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.44%)

6. Segments

Hygiene

Expected Growth: 4.73%

PZ Cussons' Hygiene segment growth of 4.73% is driven by increasing demand for personal care products, particularly in emerging markets. The company's focus on innovation, expansion of distribution channels, and effective marketing strategies have contributed to the growth. Additionally, the segment has benefited from the rising awareness of personal hygiene and wellness, leading to increased consumer spending.

Baby

Expected Growth: 8.23%

Baby segment's 8.23% growth is driven by increasing demand for gentle and natural baby care products, particularly in emerging markets. Strong brand recognition, innovative product launches, and strategic partnerships have also contributed to the growth. Additionally, the segment has benefited from the company's focus on e-commerce and digital marketing, expanding its online presence and reaching a wider customer base.

Electricals

Expected Growth: 4.83%

The 4.83% growth in Electricals from PZ Cussons Plc is driven by increasing demand for energy-efficient products, government initiatives promoting renewable energy, and rising consumer spending on home appliances. Additionally, the company's strategic expansion into emerging markets and innovative product offerings have contributed to the segment's growth.

Beauty

Expected Growth: 4.78%

The 4.78% growth of Beauty from PZ Cussons Plc is driven by increasing demand for natural and organic products, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, digital marketing, and e-commerce platforms has contributed to the segment's growth.

Other

Expected Growth: 7.03%

PZ Cussons Plc's 7.03% growth in 'Other' segment is driven by increasing demand for its home and personal care products in emerging markets, particularly in Africa and Asia. Additionally, the company's focus on innovation, expansion of its e-commerce platform, and strategic partnerships have contributed to this growth.

7. Detailed Products

Imperial Leather

A brand of soap and personal care products

Carex

A brand of hand wash and sanitizing products

Cussons Baby

A brand of baby care products

Robb

A brand of beauty and personal care products

St. Tropez

A brand of self-tanning and sunless tanning products

Original Source

A brand of natural and organic personal care products

Morning Fresh

A brand of laundry detergent and fabric care products

Zip

A brand of laundry detergent and fabric care products

8. PZ Cussons Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for PZ Cussons Plc is medium due to the presence of alternative products in the market, but the company's strong brand portfolio and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for PZ Cussons Plc due to the company's strong brand presence and customer loyalty, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for PZ Cussons Plc due to the company's dependence on a few large suppliers, but the company's strong relationships with suppliers mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for PZ Cussons Plc due to the high barriers to entry in the industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for PZ Cussons Plc due to the presence of several established players in the industry, leading to intense competition and pricing pressure.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	39.00%
Debt Cost	5.11%
Equity Weight	61.00%
Equity Cost	5.11%
WACC	5.11%
Leverage	63.93%

11. Quality Control: PZ Cussons Plc passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

McBride

A-Score: 5.1/10

Value: 8.6

Growth: 7.1

Quality: 4.9

Yield: 2.5

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

Duni

A-Score: 5.0/10

Value: 5.2

Growth: 5.3

Quality: 4.2

Yield: 4.4

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

Warpaint London

A-Score: 4.9/10

Value: 5.2

Growth: 8.2

Quality: 7.7

Yield: 7.5

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

Intercos

A-Score: 4.4/10

Value: 4.9

Growth: 7.2

Quality: 5.0

Yield: 1.9

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

PZ Cussons

A-Score: 4.0/10

Value: 6.9

Growth: 1.1

Quality: 2.7

Yield: 6.9

Momentum: 2.5

Volatility: 3.7

1-Year Total Return ->

Ontex

A-Score: 3.6/10

Value: 9.3

Growth: 4.0

Quality: 2.0

Yield: 0.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.53%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.11%

PZ Cussons Plc - GB00B19Z1432

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on PZC

1.c. Company Highlights

Weak Momentum

Average Growth

Average Quality

Lower Growth

Medium Volatility

Lower Quality

Higher Yield

Average Yield

Cheaper

Stable Momentum

Expensive

More Volatile

2. PZ Cussons FY2025 Earnings Review

Regional Performance

Strategic Initiatives

Valuation and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.44%)

6. Segments

Hygiene

Expected Growth: 4.73%

Baby

Expected Growth: 8.23%

Electricals

Expected Growth: 4.83%

Beauty

Expected Growth: 4.78%

Other

Expected Growth: 7.03%

7. Detailed Products

Imperial Leather

Carex

Cussons Baby

Robb

St. Tropez

Original Source

Morning Fresh

Zip

8. PZ Cussons Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: PZ Cussons Plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.76$

Current Price

0.76$

Potential

12.e Scoring ^Insights

12.f DCF ^BETA