PZ Cussons

PZ Cussons have a diversified portfolio of strong brands which are positioned either #1 or #2 in their respective category for market share. Separately revenues are attractively split between the more established developed market economies and growthier emerging markets with more favourable demographic trends. Management have simplified the business which saw the disposals of non-core operations and underperforming brands. This restructuring provides a renewed focus and stronger foundation for future growth.

Revenues should be able to steadily grow from both volume growth driven by underlying improving underlying demand and pricing power. It should also showcase defensive characteristics due to the essential nature of the hygiene and health related products it produces.

From an ESG perspective, products produced by PZ contribute to improved health and hygiene. Its products include Carex antibacterial hand soap and Morning Fresh antibacterial dishwashing liquid, which help to reduce the spread of communicable diseases, thereby protecting public health. The Personal Care and Home Care segments account for two thirds of overall company revenues therefore forms a significant proportion of group sales.

PZ Cussons has a complex supply chain, particularly for agricultural raw materials such as palm oil, which carries risks relating to deforestation, land conflicts, environmental degradation and human rights.

The company has committed to 100% No Deforestation, No Peat and No Exploitation (NDPE)-compliant palm oil sourcing, including derivatives and fractions, and continues to improve traceability and monitoring.

Many of its products rely on plastic packaging, creating an inherent environmental impact. The company has measures in place to manage this, including ISO 14001 certification at manufacturing sites, environmental reporting and targets, and participation in relevant initiatives. However, reducing its reliance on plastic packaging remains an area for engagement.