Latest news with #ImperialLeather
Daily Mail
26-06-2025
- Business
- Daily Mail
St. Tropez owner abandons sale as bosses back turnaround after US slump
Consumer goods group PZ Cussons no longer plans to sell its St. Tropez tanning brand after mulling bids received via an 'extensive auction process'. PZ Cussons is instead backing a turnaround for the brand in its key US market via a strategy-shake-up and a deal with a local partner. The soapmaker, which also owns the Imperial Leather and Sanctuary Spa brands, put St. Tropez up for sale in April last year as part of efforts to streamline operations after a prolonged struggle with foreign exchange headwinds and high debts. PZ Cussons wants to radically boost returns for shareholders, cut debt, streamline its operations and bolster its bottom line. But St. Tropez has weighed further on the group this year, with US demand for the tanning solution falling by a double-digit percentage in the first half. St Tropez, purchased by PZ Cussons for £62.5million in 2010, was popular with celebrities, including reality television star Kim Kardashian and American model Ashley Graham, and is sold across 28 countries, according to the brand's website. But the brand's deterioration means the group now expects to record a non-cash impairment for the year. PZ Cussons told investors on Thursday the auction process had yielded 'a number of offers' for St. Tropez 'against a backdrop of a challenging performance for the business' and a 'wider contraction of valuation multiples across the beauty category'. But the group has opted to retain St. Tropez and 'set a new strategic direction for the brand' after bosses explored 'a number of alternative business models' to 'create more value for shareholders'. PZ Cussons said it will partner with US group Emerson, which will provide provide customer management, logistics services and 'brand activation in the US' via a dedicated team selling to key US retailers It added: 'The board is 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. 'The move will help address the challenge of our sub-scale operations in the US, as identified previously, as well as further learnings gleaned over recent months. 'We look forward to strengthening retailer relationships as we work in partnership with Emerson to build the brand.' Boss Jonathan Myers said: 'Today we are setting a new direction for St. Tropez with a renewed operating model built around a focused and incentivised team, a re-set of our 'go to market' capabilities in the US and proven group operations in our other markets. 'With these changes, we are confident in the future of the brand as part of the PZ Cussons portfolio.' PZ Cussons shares were down 3.3 per cent by late morning at 72.8p, taking losses to almost 30 per cent over the last 12 months.
The Independent
26-06-2025
- Business
- The Independent
PZ Cussons pulls out of auctioning off self-tanning brand St Tropez
The owner of St Tropez has decided to hold on to the struggling self-tanning brand more than a year after putting it up for sale. PZ Cussons, the consumer goods firm which owns a raft of labels including Imperial Leather, Carex, and Sanctuary Spa, said staff will be incentivised to boost the brand's performance. It told investors in April last year that it was looking to sell St Tropez to an owner 'better placed to capture the brand's significant long-term potential'. PZ Cussons bought the beauty business for £62.5 million in 2010, and it has become one of the UK's biggest self-tanning brands sold in retailers across the country. However, it has struggled against weaker demand in the US, reporting a double-digit drop in sales over the latest financial year. The Manchester-based company told investors on Thursday that it had run an 'extensive auction process which resulted in a number of offers being received'. But at the same time, the board explored alternative options which it said 'could create more value for shareholders' than accepting any of the offers on the table. 'As such, and after careful evaluation of the offers received, the board has decided to retain St Tropez and set a new strategic direction for the brand,' it said. The team leading the brand will be incentivised to drive its value – while it also set out plans to partner with a US-based business to boost sales across the nation. PZ Cussons' chief executive Jonathan Myers said the changes mean he is 'confident in the future of the brand as part of the PZ Cussons portfolio'.
Daily Mail
18-06-2025
- Business
- Daily Mail
Carex owner slashes profit guidance as tanning brand's US sales slump
PZ Cussons has narrowed its profit guidance following subdued demand in the US for its St Tropez tanning brand. The healthcare products manufacturer, whose other brands include Imperial Leather and Sanctuary Spa, now anticipates recording adjusted operating profits of between £52million and £55million for the year ending May. It previously forecast achieving up to £58million but has lowered its outlook after St. Tropez revenues in the US fell by a double-digit percentage. The Manchester-based company's UK division also recorded an additional £2million in costs related to the Extended Producer Responsibility scheme, whereby packaging producers must pay the full cost of managing their packaging waste. However, PZ Cussons expects to post an 8 per cent rise in annual like-for-like sales and reported turnover of around £505million. While revenues across Europe and the Americas remained flat, PZ said it enjoyed 'good growth' in the UK. During the second half of the year, the firm observed a return to growth in the Asia-Pacific region, thanks to a strong performance in Indonesia and higher sales in Africa amid the 'inflationary macro-economic environment in Nigeria'. Foreign exchange headwinds over the past two years have severely hit demand for PZ Cussons's products in Nigeria, one of its largest markets. PZ Cussons further announced that it had agreed to sell its 50 per cent stake in PZ Wilmar, a Nigerian edible oils business, to joint venture partner Wilmar International for $70million (£51million). Founded in 2010, PZ Wilmar produces cooking oils sold under the Mamador and Devon King brand names. The disposal follows a strategic review completed by PZ Cussons last year that concluded the group was 'too complex for its size' and had its resources' spread too thinly' to provide consistently healthy returns. It suggested selling St. Tropez to a new owner that could help the brand achieve long-term growth in the US. Jonathan Myers, chief executive of PZ Cussons, said: 'I am delighted to announce the sale of our stake in PZ Wilmar to our joint venture partner. 'In doing so, we are exiting a non-core category, reducing the risk associated with our presence in Nigeria, and materially strengthening our balance sheet. 'At the same time, the smooth transition of ownership offers continuity for colleagues and operations.' PZ Cussons owns two dozen brands, such as dishwashing liquid Morning Fresh, baby food Rafferty's Garden, Carex hand gel, and Charles Worthington shampoo. PZ Cussons shares were 1.7 per cent down at 77.2p on late Wednesday morning and have lost about 24 per cent of their value over the past year.
