HIGHLIGHTS
Group
Revenue and operating profit broadly flat versus the comparative period with a strong performance in Europe offsetting a difficult trading environment in Nigeria and the impact of weaker currencies in Asia and Africa
Excluding the impact of currency, revenue and operating profit were 9.6% and 3.5% respectively ahead of the comparative period
New product launches driving maintained or growing market shares in the Group's major markets and categories
Strong balance sheet with net debt at 1.4 x EBITDA
Interim dividend maintained at 2.61p per share
Africa
Low oil prices contributing to environment of tight liquidity and restricted foreign exchange availability
Robust performance in Nigeria home and personal care despite extremely competitive environment
Revenue and profits in Nigeria electricals significantly lower as a result of squeeze on disposable income
Continued strong performance in Nutricima milk business which is now 100% owned following last year's buy-out of JV partner
Profits ahead in PZ Wilmar edible oil JV in first half although currency liquidity now impacting business
Asia
Strong revenue growth in Indonesia across both baby care and non-baby care portfolios
In Australia, good performance from personal care, beauty and food & nutrition brands Rafferty's Garden and five:am mitigating challenging trading conditions in home care
Europe
UK washing and bathing division performing well driven by a continuous innovation pipeline and the launch of a new range of Carex bodywash products
Strong performance in the beauty division driven in particular by St Tropez's new in shower gradual tan lotion and a new range of Sanctuary products
Commenting today, Richard Harvey (Chairman) said:
"These are a steady set of results in what have been challenging markets with overall revenue and profitability broadly flat versus the comparative period. A strong performance in Europe has offset a more difficult trading environment in Nigeria and the impact of weaker currencies in both Asia and Africa.
The Group continues to maintain a strong pipeline of new products with good examples of successful new launches in the period being St Tropez's new in shower gradual tan lotion and the new range of Carex bodywash products. These demonstrate the importance of delivering innovation to the consumer to drive growth in challenging trading conditions, and have ensured that our market share positions are either held or grown in our core categories.
It is particularly pleasing to note that our European businesses are performing strongly and are offsetting the challenges in emerging markets and the impact of currency weakness, and highlights the importance of geographic and category diversity that continues to serve the Group well.
The Group's balance sheet remains strong with net debt at 1.4 x EBITDA at the period end. The strength of our balance sheet gives us the flexibility to further evolve the Group's portfolio into new areas of growth and to take advantage of new investment opportunities as they arise.
Looking through the short-term challenges in Nigeria, we remain confident about the medium and long term opportunities which should begin to materialise once growth returns to that economy.
Performance since the period-end has been in line with expectations."
