II Editor
22 Sep 2015
NEW ARTICLE: PZ Cussons 'probably oversold' "Soaps and detergents colossus LSE
ZCZ Cussons has had a terrible time of late. Its shares have slumped by 23% since May to a five-year low, with business torpedoed by everything from Ebola to a slowdown in emerging markets to a weak Nigerian ..."[link]
gamesinvestor
10 Sep 2015
Re: Investec Interesting upgrade, but the price is coming from a grossly over valued position.What is the attraction with PZ Cussons?It hasn't grown it's business in years, at a time when most other companies have done significantly. It's revenue last year was £819M, yet it was at this level (£820M actually) in 2011. During that time it's pre-tax profit actually fell from £108M to £84M. The only thing that is rising here is the dividend -- surely that is going to be difficult to sustain in the face of collapsing emerging market currencies and the impact that will have reporting back in £ sterling. At the moment it's supposedly 2X covered but not sure about the cash cover if anybody knows this.If you look at it's market's they look highly risky - Nigeria is rife with unrest and could be a tinderbox of trouble going forward.Wouldn't you be better to sell PZ and invest in Unilever which has a higher :-ROCE = 101% compared to 22% for PZDividend Yield = 3.3% (but lower cover) compared to 2.8% for PZEarnings growth rate expected in high single digit teens compared to low for PZMuch broader global reach for Unilever with a more balanced business worldwide and stronger in the western countries.All told, Unilever looks like a better option from a growth perspective and with lowered risk, having less % exposure to war torn regions.Having said that, PZ share price has fallen another 4.7% today, so at some juncture it will still be a buy -- below 250 maybe, if it gets there.Games
nk1999
09 Sep 2015
Investec From ADVFN:"PZ Cussons got a boost after Investec lifted the stock to 'buy' from 'hold', noting weakness in the shares since July."Whilst there remains a risk of further currency headwinds this year, we feel the stock price, at these low levels, is more than discounting a 15-20% devaluation," said Investec.It said PZ Cussons' 2015 results were resilient in the face of a number of challenges ranging from Ebola to slower growth in emerging markets and currency headwinds.It pointed out that management is well versed in navigating the challenges of emerging markets. Currency weakness has been a growth limiting factor and this could continue to influence the outcome for full-year 2016, said Investec.However, it argued that PZ Cussons remains committed to the longer-term opportunities , investing in its branded FMCG portfolio, with a growing emphasis on Food."SP up ~9p today to 303p,nk
tejo
20 Jul 2015
Profit warning Nothing new in this article which repeats in fo. provided by the Co. a while back. Qustor upgraded PZC only last April. Results may not be good to-morrow but Co has momentum behind its brands and believe will go well in current year.
gamesinvestor
18 Jul 2015
Profit Warning [link]
nk1999
02 Apr 2015
Telegraph- Questor "The Questor ColumnZ Cussons upgraded after milk deal: PZ Cussons, the Owner of PG Tips and Domestos bleach, has signed a deal to take full control of a milk joint venture in Nigeria. The FTSE 250-listed consumer goods company has paid £21 million in cash for Glanbia’s 50% stake in Nutricima, which makes evaporated milk and milk powder for the Nigerian market. The Nutricima business generated earnings of £74.4 million and pretax profits of £3.2 million in the 12 months to the end of May last year. Cussons’ sales in Nigeria have suffered amid unrest in the north of the country. The economy is also highly reliant on the price of oil, which has collapsed since June last year. This has caused a sharp devaluation in the value of the naira. The company has had a presence in Africa for more than 100 years and the region contributes about a third of the group’s profits. Cussons’ shares have performed well this year, rising by 11%, compared with a wider FTSE 250 that is up 6.5%. We downgraded the shares to an avoid last year as we waited until we saw the results of Nigeria’s election and how much profits have been impacted from the falling oil price. The election passed peacefully and we now wait for the trading update on June 11 to get a clearer picture of the profitability. The group has a proven track record over the long term, with a forecast dividend of 8p offering a prospective yield of 2.4%. The payout has increased 40% over the past four years and analysts expect it to increase by more than inflation in the future. The shares are highly rated, trading on 17.4 times forecast earnings, and there is still the issue of how the Nigerian economy will navigate much lower oil prices. However, given the improved political backdrop, we upgrade to a hold. PZ Cussons at 342p-½p. Questor Says “Hold”.
tejo
27 Feb 2015
Why the rise - a bid perhaps Very nice rise to-day but I wonder why. PZC has some excellent brands and could be a bid target -Unilever?
glasgowboy
03 Feb 2015
pz long term I think will do well
nk1999
26 Jan 2015
Times "Sell shares of PZ Cussons, Danny Fortson recommended in the Sunday Times. The maker of Imperial Leather soap has been hit by economic problems in Nigeria, its biggest market, and pressure applied to suppliers by the UK supermarkets. Cussons' Chief Executive Alex Kanellis will struggle to meet forecasts for this year, the Inside the City columnist said. Cheaper oil will mean more money in most of the world's consumers' pockets but Cussons will face further problems in Nigeria, which is also grappling with an insurgency. Cussons has steered itself admirably but more pain is in store."From Sunday Times.
gravy
26 Jan 2015
Re: Telegraph- Questor Its a great company- facing some difficult external factors. One to top up if it wobbles I wd say. But it probably wont wobble ! A long term strong hold and buy some if you can.
dandigirl
26 Jan 2015
Re: Telegraph- Questor """The consumer products it sells provide steady revenue, even though a recession. The company has an excellent profit growth track record and has rewarded investors with a steadily rising dividend. The forecast 8.6p full year dividend currently provides a yield of 2.4%, growing at 8% a yearThese are the important words - and I take the founding family still holding 35% as a positive, not a negative. Truth is this company has been around for a very long time and is used to the ups and downs in Africa, especially Nigeria. We should learn more from the interims tomorrow, 27/1.
nk1999
25 Jan 2015
Telegraph- Questor "The Questor Column:Avoid PZ Cussons as Nigeria suffers oil shock: PZ Cussons [LONZC], the FTSE 250-listed household goods giant that makes Imperial Leather soap and St Tropez fake tan, has a history of trading in Africa which dates back to the early 1800s. The market is expecting pretax profits of about £46million in the first half and £110million for the full year ending May and revenue of £830million. Downgrades to those profit forecasts could follow after the half year trading update this week. The company generates almost two thirds of revenue and about half of its operating profits from Africa and Asia. Nigeria is its biggest market in Africa, which in turn contributes to 40% of group sales. The company warned in its update in December that economic conditions in Nigeria could have an impact on full year results. In Europe performance has been good. In the U.K. new product launches for the Cussons brand are planned and St Tropez products were once again boosted by the Kate Moss effect. PZ Cussons is a quality company over the long term. The consumer products it Sells provide steady revenue, even though a recession. The company has an excellent profit growth track record and has rewarded investors with a steadily rising dividend. The forecast 8.6p full year dividend currently provides a yield of 2.4%, growing at 8% a year. There is also a lack of liquidity – the founding family still owns a 35% stake in the business. Questor says “AVOID”. "
melrosian
31 Dec 2014
Re: Telegraph- Questor Frankly think Telegraph article is twaddle short termist poor analysis. It has helped fetch a good cheap in price for a bottom drawer share. Think Reckit Benkiser then wonder which planet the Telegraph is on?Mel
nk1999
13 Dec 2014
Telegraph- Questor "Avoid PZ Cussons as Africa hits profits: PZ Cussons, the FTSE 250-listed consumer goods giant, has grown rapidly thanks to its exposure to emerging markets. However, falling profits in Nigeria dragged the group down in the first half of its financial year, and broker downgrades sent the shares 1.3% lower. Cussons’ sales in Nigeria suffered as Islamist extremists continued to cause widespread disruption in the north of the country. The economy is also highly reliant on the price of oil, which has collapsed since June. This has caused a sharp devaluation in the value of the Nigerian currency, the naira, which has fallen 9.5% since the end of March. Brandon Leigh, Cussons’ Chief Financial Officer, said profits from Nigeria are typically weighted towards the second half of the company’s financial year, as consumers have more to spend after the harvest is brought in. However, sales in the six months to March will be hit by the loss of a week’s trading as people travel home to vote in the Presidential elections, while profits will be reduced by the falling value of the naira. Mr Leigh said the European beauty division saw limited growth in Europe, but a stronger performance in the U.S. and Australia. The St Tropez range of self-tanning products, which is advertised by model Kate Moss, continued to grow profits across Europe. Sales in Poland were steady but the company warned that full year profits there would be lower following the sale of its Polish homecare brands to Germany’s Henkel for £46.6 million in February. The group has a proven track record over the long term, while a forecast dividend of 8.4p offers a yield of 2.5%. The payout has grown 40% over the past four years and analysts expect it to increase more than 10% in the next two years. Based on the current high-growth price earnings rating of almost 18 times and the illiquid nature of the shares – the founding family still owns a 35% stake in the business – Questor cannot advise a purchase at the current level. PZ Cussons at 314.2p-1.6p Questor Says ‘Avoid’."
