LONDON -- PZ Cussons
PZ's preliminary results were a mixed affair. Sales improved by 5% to 859 million pounds, while underlying profits slumped 15% to 92 million pounds. Higher material costs, disappointing Australian trade, and "social and economic tensions" in Nigeria were cited for the shortfall.
Commenting on the results, chairman Richard Harvey said:
Despite the external challenges, the Group remains committed to driving profitable growth through brand renovation and innovation, and through further cost reduction. During the year, underlying revenue growth continued across the business, particularly in the UK, in the Beauty division and in Indonesia. As we start the current financial year this momentum, together with our new Cussons Mum & Me and Fudge ranges, will help to ensure this growth continues.
At 318 pence, PZ's shares trade at 22 times today's earnings figure and yield 2.1%. Although PZ has an illustrious track record, the company's immediate rating does not look so attractive. However, there are other shares in the market today that boast durable dividend records and trade at more reasonable valuations.
In particular, stock-picking superstar Warren Buffett has alighted upon a prominent FTSE name that has lifted its dividend every year for 28 years -- not as long of PZ, of course, but long enough to impress the world's greatest investor. This special Motley Fool report -- "The One UK Share Warren Buffett Loves" -- reveals the company in question and how much Mr. Buffett paid for his shares. Get your copy now, as the report is free for a limited time only.
Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors for 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.
Further Motley Fool investment opportunities:
Maynard does not own any share mentioned in this article. The Motley Fool owns shares in PZ Cussons. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.