PZ Cussons Selling St Tropez

Consumer goods giant PZ Cussons has announced its intention to sell its premium tanning brand St Tropez, as part of the company’s broader strategy to boost growth amid declining revenue.

The company explained that while there remain long-term growth opportunities for St Tropez, these will be limited under its ownership, given the need to allocate resources across a diverse geographic and category footprint.

PZ Cussons will initiate a sale of St Tropez to ‘an owner better placed to capture the brand’s significant long-term potential’, as part of its strategy to enhance shareholder returns.

The decision to divest comes as the Manchester-based consumer goods company, which owns popular brands like Charles Worthington, Imperial Leather, and Sanctuary Spa, reported a revenue of £126.7m for the third quarter of 2024. This represents a 6.4% increase on the previous year, supported by a substantial 40% revenue increase in Africa. However, despite these gains, revenue in Europe & the Americas slightly declined by 0.4%, and in the Asia Pacific region, it fell by 5.7%. Furthermore, at reported foreign exchange rates, overall revenue declined by around 24%, primarily due to the devaluation of the Nigerian naira, which was on average 60% lower in the quarter compared to a year prior.

“We have undertaken a strategic review of our brands and geographies and have embarked on plans to transform our portfolio, refocusing on where the business can be most competitive,” said Jonathan Myers, CEO of PZ Cussons. “This strategic pivot will allow us to invest our resources in the key geographies and categories in which we can win and generate superior returns, aiming for sustainable profitable growth and a more focused brand portfolio.”