9 February 2022

LIKE FOR LIKE REVENUE GROWTH IN Q2 AND MARGINS MAINTAINED

DESPITE SIGNIFICANT COST INFLATION

INTERIM ANNOUNCEMENT OF RESULTS FOR THE HALF YEAR TO 30 NOVEMBER 2021

PZ Cussons plc ("PZ Cussons" or the "Group") today issues Interim Results for the half year ended 30 November 2021.

(1)    Like for like revenue growth adjusts for constant currency and excludes the impact of continuing operations disposals (five:am)

(2)    Adjusted profit measures reflect the statutory profit equivalents as adjusted only for the removal of adjusting items, which are detailed in note 4

(3)    Net debt is defined as cash, short-term deposits & current asset investments, less bank overdrafts & borrowings, but excludes IFRS16 lease liabilities (note 11)

* The results for the half year to 30 November 2020 have been restated to reflect the prior year adjustments and accounting treatment amendments in the full year accounts for FY21. Further details are set out in note 2.

Commenting today, Jonathan Myers (CEO) said:

"We have seen continued progress against both our new strategy and our pursuit of sustainable, profitable revenue growth. The Q1 revenue decline was driven primarily by Carex lapping unprecedented demand for Hygiene products at the peak of the COVID-19 pandemic in the prior year. The business returned to revenue growth in Q2 with our core Baby and Beauty categories growing revenue in the first half overall. Revenue from Must Win Brands, excluding Carex, grew +10% and the overall business showed strong underlying momentum when comparing the results to the equivalent period two years ago. Continued Price / Mix improvements helped strengthen gross margin in the first half of the year, allowing us to increase Media & Consumer investment behind our brands and maintain our operating margin. These results demonstrate our ability to use the strength of our brands to protect margins in the face of cost headwinds.

Beyond our financial performance, we made continued progress against our strategy: Building brands for life. Today and for future generations. We have introduced new talent as we continue to strengthen our Executive Leadership Team and rolled out a new set of values to underpin our drive to build a stronger performance culture. At the same time we remain on track to simplify our Nigeria operations, realising value through the sale of some of our residential properties, and we are strengthening our sustainability plans on our path to B-Corp certification. The disposals of our Food & Nutrition businesses, the Nutricima milk business in Nigeria in FY21 and the five:am yoghurt business in Australia in FY22 demonstrate our determination to optimise our portfolio, explaining the temporary complexity in our alternative performance measures.

The Board has approved an interim dividend, maintained in line with the prior year, of 2.67p, reflecting our confidence in the underlying business momentum but also recognising that challenges remain for the second half. Commodity and freight costs show no sign of abating in the near term and we continue to anticipate cost pressures into FY23. Our focus is on both protecting our margins but also continuing to invest in the business, to secure future growth and build the capabilities we need to deliver against our strategy."

Financial Highlights

Alternative performance measures
Unless otherwise stated, in the following section, all references to revenue are in line with the alternative performance measure for revenue above; that is, on a like for like basis which adjusts for constant currency and excludes the impact of continuing operations disposals (five:am). See page 4 for a quantification of the impact of constant currency and disposals. All other metrics are not adjusted for constant currency or disposals.

Gross margin is defined as gross profit divided by statutory revenue. Adjusted operating margin is defined as adjusted operating profit from continuing operations divided by statutory revenue. Must Win Brands are defined on page 10 of our Annual Report and Financial Statements 2021.

See page 6 for a reconciliation of alternative performance measures by segment.

·      A return to mid-single digit revenue growth in Q2, following the Q1 decline, limited first half revenue decline to -2%. First half revenue is up +13% when comparing to the equivalent period two years ago

·      H1 revenue was up in both our core categories of Beauty (+21%) and Baby (+1%). Hygiene was down -12% but, excluding Carex, grew +6%. Carex declined against the peak of the COVID-19 pandemic but has gained significant share in a now larger UK hand hygiene category

·      H1 revenue decline in Europe was offset by strong growth in Africa, in conjunction with improved profitability. Asia revenue held flat, despite COVID-19 restrictions in Indonesia, as we targeted the higher margin Baby sub-categories

·      Revenue from Must Win Brands declined -11%. Excluding Carex, they grew +10% in aggregate, with each of the brands in growth

·      Despite significant commodity, freight cost and FX headwinds, gross margin increased +40bps. Price / Mix improvements and continued strong Beauty momentum together more than offset the cost pressures

·      After increased brand investment, adjusted operating margin was maintained in line with the prior period, at 11.6%

·      Adjusted profit before tax from continuing operations of £32.0m was -8% lower, reflecting the normalised demand in the UK hand hygiene category and the impact of the five:am disposal, partially offset by a lower interest charge

·      Adjusted basic earnings per share from continuing operations of 5.64 pence was -15% lower than the prior period, reflecting the decline in adjusted profit before tax from continuing operations and a higher share of profit owed to minority interests

·      The balance sheet continues to strengthen with net debt⁽³⁾ of £(10.5)m versus £(30.7)m at the start of the FY22 financial year, with undrawn financing facilities at 30 November 2021 of £219m

Statutory measures

·      Revenue decline of -9% versus the prior period is predominantly due to the disposal of the non-core five:am yoghurt business in Australia and normalised demand for hand hygiene products in the UK

·      Profit before tax from continuing operations of £35.1m was +8% higher than the prior period, largely as a result of the net income from adjusting items in this period compared to a net charge in the prior period

·      Adjusting items in the period were a net income before tax of £3.1m predominantly driven by the profit on disposal of residential properties in Nigeria as part of the Nigeria Simplification project

·      The loss from discontinued operations in the period (£0.7m) relates to the historical disposal of Minerva and in the prior period (£10.7m) is primarily related to the disposal of the loss-making non-core Nutricima business in Nigeria

·      Profit after tax of £27.9m is nearly double the prior period (£14.2m) largely due to the impact of discontinued operations

The Board has approved an interim dividend, maintained in line with the prior year, of 2.67p. This reflects our confidence in the underlying business momentum but also recognises that we, like other consumer goods companies, continue to navigate uncertainty in the still volatile inflationary environment.

Outlook
 

Despite the backdrop of a volatile inflationary environment, with cost pressures accelerating, we expect to deliver adjusted profit before tax from continuing operations for FY22 within the current range of consensus estimates. Revenue Growth Management and cost mitigation initiatives are enabling us to continue to invest in the business for the long term.

For further enquiries, please contact

Investor and Analyst conference call

PZ Cussons' management will host a webcast for analysts and investors at 9.30am to present the results and provide the opportunity for Q&A.

The presentation slides to accompany the conference call are available to download from the website at www.pzcussons.com.

The interim dividend will be paid on Thursday 7 April 2022 to shareholders on the register at the close of business on Friday 11 March 2022.

Business Review

The following performance commentary is presented on a continuing operations basis.

Unless otherwise stated, in the following section, all references to revenue are in line with the alternative performance measure for revenue above; that is, on a like for like basis which adjusts for constant currency and excludes the impact of continuing operations disposals (five:am). See page 4 for a quantification of the impact of constant currency and disposals. All other metrics are not adjusted for constant currency or disposals. Adjusted operating profit is presented on the basis explained on page 1.See page 6 for a reconciliation of alternative performance measures by segment.

Europe & the Americas Highlights
 

·      Strong demand for our Beauty brands was driven by successful marketing activation, increased distribution and promotional efficiency. This was offset by lower demand for Hygiene products since the height of the pandemic

·      Revenue decline of -19% was driven by Carex, up against the peak of the COVID-19 pandemic. Hand hygiene demand has normalised off the peak now restrictions have eased, but new consumer habits mean both the liquid hand wash and sanitiser gel categories are at higher levels than pre-pandemic. In addition, continued brand investment has enabled Carex to strengthen its market-leading position in the UK hand hygiene category, taking approximately 4ppts of share (IRI, 26 weeks ending 27 November 2021)

·      Original Source returned to revenue growth and gained market share, following the introduction of the 'I'm Plant Based' range in addition to growth on the core product portfolio following the successful 'Force of Nature' through-the-line campaign and improvements in product formulation

·      Imperial Leather revenue declined, facing increased competition in the shower segment. It gained share however in the overall UK Washing & Bathing category, driven by bar soap and handwash. Work is progressing on a major repositioning of the Imperial Leather brand, with the launch planned for FY23

·      Sanctuary Spa revenue grew strongly, thanks to a new consumer insight through-the-line campaign. St.Tropez momentum continued, with revenue growth in both the US and UK, with favourable product mix. Both brands successfully de-seasonalised the brands, beyond gifting and peak spring / summer season, respectively

·      Operating profit of £19.6m, -28% versus the prior period, with revenue decline in Hygiene and growth in Beauty

Asia Pacific Highlights

·      Asia Pacific revenue grew +0.3%. Cussons Baby in Indonesia was flat, despite pandemic restrictions severely impacting retail channels. Cussons Baby maintained a market-leading position, with a share of approximately 25%, and also saw significant Price / Mix improvements both from a focus on driving the growth of the more profitable segments within the Baby category and price increases

·      Revenue in Australia / New Zealand was held back by Q1 supply issues on Rafferty's Garden, which are now resolved. Morning Fresh revenue grew, despite being up against high consumption at the peak of the COVID-19 pandemic in the prior year, and gained over 4ppts of share of the Australia dishwash category (up to 47% Nielsen Australia Grocery Scan 26 weeks to 30 November 2021)

·      Adjusted operating profit of £10.9m declined -7%, with improved underlying margins offset by the disposal of five:am

·      Operating profit of £12.8m was +15% up on the prior period, including £1.9m of adjusting items related to the profit on disposal of five:am and compensation received from the Australian Competition & Consumer Commission relating to a historical legal claim

Africa Highlights

·      Revenue grew by +22%, reflecting growth across all of Nigeria, Kenya and Ghana

·      The Must Win Brands of Morning Fresh, Premier / Joy and Cussons Baby all grew revenue by double-digits versus the prior period. Revenue from Portfolio Brands, including Electricals, was also up. Premier / Joy both increased their market share positions and Morning Fresh maintained its market-leading position, with a share of 58% (Nielsen MAT period ended 30 November 2021)

·      Price increases across all product categories offset significant input cost inflation arising from commodities, freight and forex

·      Our Palm Oil joint venture, PZ Wilmar, improved profitability compared to the prior period through expanded distribution and successful pricing activity

·      Adjusted operating profit of £8.4m was +£6.1m versus the prior period as a result of higher revenues, reduced overheads and a stronger contribution from PZ Wilmar

·      Operating profit of £10.1m, +£9.3m versus the prior period, reflects a net credit of £3.8m recorded within adjusting items relating to the Nigerian Simplification programme, the credit being driven by profits on disposal of some residential properties. Total adjusting items are a net £1.7m credit

Central

·      Adjusted operating loss of £(6.0)m compares to £(4.9)m in the prior period, driven by adverse foreign exchange impacts

·      Overheads were broadly flat, as we maintained investment in strategic capabilities

·      Operating loss of £(6.5)m further includes £(0.5)m of adjusting items in relation to the disposal of five:am, recycling of foreign exchange on quasi-equity loans and the derecognition of intangible assets related to cloud computing

Basis of Preparation

The accounting policies applied in our interim financial statements are consistent with those of the annual financial statements for the year ended 31 May 2021, apart from a change to the accounting policy in relation to cloud computing costs. See note 2 for further detail. The Directors continue to adopt the going concern basis in preparing the accounts on the basis that the Group's strong liquidity position is sufficient to meet the Group's forecasted funding needs, including those modelled in a downside case.

The discontinued operations for the 6 months to 30 November 2021 represent the resolution of a purchase price adjustment associated with Minerva, the Group's Greek operations disposed of in FY20. The discontinued operations presented in the comparative periods, include Nutricima Ltd as the assets of this business were disposed of on 28 September 2020.

On 4 June 2021, the Group completed the sale of the assets associated with five:am, our yoghurt business in Australia. On this date, the control of the assets passed to the acquirer, Barambah Organics. In line with IFRS 5 'Non-Current Assets Held for Sale and Discontinued Operations', the results of five:am have not been reported within discontinued operations in these financial statements as the disposal of five:am did not represent a disposal of a major line of business or an exit from a geographical area of operation.

In our financial statements we use alternative performance measures ('APMs') that are not recognised under IFRS. The Group believes that these measures are not considered to be a substitute for, or superior to, IFRS measures. These metrics are used to allow the readers of the financial statements to obtain a consistent comparison of the performance of the Group by adjusting for certain items which, if included, could distort the understanding of the Group's performance and comparability between periods. The adjustments made to obtain the APMs are detailed within the notes to the financial statements which allows a reader to form their own judgement on the trends, performance and position of the Group with the additional information provided. The same measures are used by management for planning, budgeting and reporting purposes and for the internal assessment of operating performance across the Group. The APMs are not defined by IFRS and therefore may not be directly comparable with other companies' APMs. The adjusted items accounting policy was adopted for the previous year end results and represents a change from the Group's previous practice of reporting exceptional items. It will be adopted on a consistent basis for the purposes of the half year and full year reporting going forward. Where relevant, comparative IFRS measures have also been presented.

Adjusted results are presented having removed the impact of adjusting items which, in the financial year to date, include: items related to the Nigeria Simplification project; the profit on disposal of five:am; the recycling of accumulated foreign exchange losses due to a decision in the period to repay an intercompany quasi-equity loan; income received in settlement of an historical Australian Competition & Consumer Commission case; and the derecognition of amounts capitalised as intangible fixed assets in prior periods that related to cloud computing arrangements and which following the IFRIC agenda decision issued in March 2021 have been derecognised, in line with the Group's revised accounting policy. Further detail on adjusting items is available in note 4.

The adjusted and statutory results for the current period are presented with variances to prior period results and as variances between the current and prior period on a like for like basis which adjusts for constant currency and the impact of disposals (five:am). The constant currency impact has been derived by retranslating the prior period result using reported year foreign currency exchange rates. The translational impact was a £11.2 million loss on revenue, a £(0.8) million loss on adjusted operating profit and a £(0.5) million loss on reported operating profit. Five:am revenue was £8.1m in the prior period.

As a business we continue to make decisions on a geographic basis, and the information reviewed by the Chief Operating Decision Maker is based on a geographic segmentation of the business. Therefore, the financial performance discussed below is focused on the performance of the key regions. Further detail on the segmental performance is detailed in note 3 to the Financial Statements.

Financial Review

The statutory profit after tax of £27.9m compares to £14.2m in the prior period. The results for the 6 months ended 30 November 2021 include £3.5m of net income from adjusting items, including profits on disposal of Nigerian residential properties of £11.2m, whereas the prior period included net adjusting costs of £(9.7)m predominantly related to the loss on disposal of Nutricima, the Group's milk business in Nigeria. Basic earnings per share were 6.14p (2020: 3.42p).

Adjusted profit before tax from continuing operations was £32.0m, a decline of -8.3% compared to last year driven by the reduction in revenue which was predominantly due to the decline seen in the UK business and the impact of the disposal of five:am. Statutory profit before tax was £35.1m, +8.3% compared to last year, with the decline in revenue offset by the net income from adjusting items.

Revenue, at £283.7m, declined -9.3% compared to the prior period with decline across Europe & the Americas and Asia Pacific partially offset by growth in Africa. The growth in Africa was due to growth in our key Must Win Brands and Portfolio Brands, including Electricals. The decline in Asia Pacific was largely driven by the disposal of five:am. The revenue decline in Europe was due to the decline of Carex, which is compared to the peak demand from COVID-19 in Q1 FY21. On a constant currency basis and excluding the impact of five:am disposal, Asia Pacific revenue was flat compared to the prior period and Group revenue was -2.0% below the prior period.

Gross profit of £109.9m was -8.3% lower than the prior period with improvement in gross margin, at 38.7%, compared to 38.3% in the prior period. This was due to Price / Mix improvements and strong performance in our Beauty business offsetting input cost inflation in the first half.

Net finance costs of £0.9m (2020: £1.5m) were lower than the prior period, reflecting higher cash balances and lower borrowings as a result of positive operating cash flow and proceeds from the disposals of the residential properties in Nigeria, and five:am.

Adjusted profit before tax from continuing operations, at £32.0m, (2020: £34.9m) reflected the reduced revenue across Europe & the Americas and Asia Pacific, despite improved gross margins and reduced finance costs. Statutory profit before tax of £35.1m compared favourably to £32.4m in the prior period.

The effective tax rate on adjusted profit before tax was 21.6% (2020: 22.6%). The effective tax rate on statutory profit before tax was 18.5% (2020: 23.1%). The reduction in statutory effective tax rate is due to a deferred tax release linked to the disposal of five:am, which is disclosed within adjusting items.

Adjusted earnings per share from continuing operations of 5.64p (2020: 6.67p) decreased by -15.4% as a result of the lower adjusted profit after tax. Statutory earnings per share from continuing operations of 6.31p (2020: 5.98p) increased as a result of the higher statutory profit after tax.

In the half year to 30 November 2021 the Group recognised adjusting items which aggregated to a net credit, after tax, of £3.5m. Further detail is available in note 4. £2.8m of net income after tax was recognised in relation to the Nigeria Simplification project; within this, £11.2m related to profit on disposal of residential properties, offset by £(7.4)m recognised on the impairment of factory assets and associated engineering spare parts held in inventory, together with a net tax charge of £1.0m. Additionally, the Group recognised an adjusting item representing £2.5m of profit after tax linked to the disposal of five:am, the Group's Australian yoghurt business. A further £(1.6)m of costs were recognised due to the recycling of historical foreign exchange losses following a decision in the period to repay a quasi-equity loan held the Group's Ghana subsidiary. Additionally, the Group recognised £1.0m income after tax due to the receipt of a compensation payment from the Australian Competition & Consumer Commission related to a historical case. The Group has also recognised a £(1.2)m loss after tax related to the derecognition of amounts capitalised as intangible fixed assets in prior periods that related to cloud computing arrangements and which, following the IFRIC agenda decision issued in March 2021, have been derecognised in line with the Group's revised accounting policy.

The £(0.7)m loss from discontinued operations in the period related predominantly to the resolution of a purchase price adjustment in relation to the historical Minerva disposal. In the prior period, the loss from discontinued operations was £(10.7)m which was predominantly related to the loss on disposal of Nutricima, the Group's Nigerian milk business. Further detail is available within note 16.

Total profit for the period was £27.9m, compared to £14.2m in the prior period. In broad terms, this reflects the loss on disposal of Nutricima recognised in the prior period and the net income recognised in the current year from the disposal of five:am and the Nigerian residential properties. Statutory earnings per share of 6.14p (2020: 3.42p) increased compared to the prior period due to the increase in statutory profit, as described above.

Net debt, defined as cash, short-term deposits and current asset investments, less bank overdrafts and borrowings and excluding IFRS 16 lease liabilities, at £10.5m (November 2020: £18.2m, May 2021: £30.7m), reduced due to operating cash inflows, alongside the proceeds from the disposals of the Nigerian residential properties and five:am. The draw down on our £325m credit facility was marginally lower than last year; we had headroom at 30 November 2021 of £219m (2020: £217m).

Total free cash flow, defined as cash generated from operations less capital expenditure, was £20.3m (2020: £31.6m). Working capital has increased since the start of the financial year with a net outflow of £(14.6)m. Inventory levels increased largely because of the traditional seasonality in Africa ahead of the peak dry season and also impacted by higher commodity costs, although this was largely offset by increased payables. Debtors also increased, with closing balances higher because of improved Q2 trading, particularly in our Beauty and Africa businesses.

Our balance sheet remains strong with net assets of £417.1m as at 30 November 2021 (November 2020: £413.9m, May 2021: £381.8m). The Group is funded by a £325 million Revolving Credit Facility committed until 28 November 2023, with £219m in headroom as at 30 November 2021.

The Group's three UK pension schemes have an aggregate pension accounting surplus under IAS 19 of £41.2m, after the restriction due to asset ceiling (2020: £35.8m). The overseas schemes reported a deficit of £9.3m (2020: £7.6m).

Related parties

Related party disclosures are given in note 14.

Principal risks and uncertainties facing the Group

Our principal risks and uncertainties are explained in more detail in note 19 and remain as stated on page 54 of our 2021 Annual Report and Financial Statements which is available on our website at www.pzcussons.com.

Business Performance: Regional Performance

(1)       Like for like revenue variance is calculated at constant currency and excludes the impact of disposals. See page 4 for further information

(2)       Adjusting items before tax (2021: income £3.1m; 2020: expense £2.5m) are detailed in note 4.

*         The results for the half year to 30 November 2020 have been restated to reflect prior year adjustments. Further details are set out in note 2.
 

The following performance commentary is presented on a continuing operations basis.

Unless otherwise stated, in the following section, all references to revenue are in line with the alternative performance measure for revenue above; that is, on a like for like basis which adjusts for constant currency and excludes the impact of disposals that are not treated as discontinued operations (five:am). All other metrics are not adjusted for constant currency or disposals. See page 4 for a quantification of the impact of constant currency and disposals. Adjusted operating profit is presented on the basis explained on page 1.

Europe & the Americas

Revenue, at £95.1m, declined -18.5% versus the prior period with a decline in adjusted operating profit to £19.6m (2020: £27.3m).

In comparison to the prior period, UK Personal Care revenue declined, driven by reduced demand for hand hygiene products as the UK laps the peak demand of the COVID-19 pandemic. The category has normalised at levels higher than before the pandemic.

Carex has driven the decline versus the prior period. The brand successfully maintained its number 1 position in the combined hand hygiene category, increasing its share of both liquid handwash (up to 41%, IRI 26 weeks ending 27 November 2021) and hand sanitiser (up to 26%, IRI 26 weeks ending 27 November 2021). This was achieved in the face of ongoing demand volatility, a resurgence of private label products and increased competition from new entrants as well as existing category players.

Original Source revenue grew versus the prior period and increased its market share of the shower category to 7.7% (Kantar, value share, 24 weeks to 28 November 2021) due to the successful introduction of the 'I'm Plant Based' range and the growth of its core proposition after the success of the new 'Force of Nature' through-the-line campaign which grew brand awareness, penetration and share.

Imperial Leather revenue declined versus the prior period as the brand lost out to strong competition in the shower segment. Despite this, the brand gained 1ppt of share within the overall UK Washing & Bathing category (Kantar, value share, 24 weeks to 28 November 2021) driven by gains in the bar soap and hand wash segments. Work is progressing on a major repositioning of the Imperial Leather brand, with the launch planned for FY23.

There was strong revenue growth from Beauty, most notably St.Tropez in both the US and UK where we have seen a category recovery post pandemic, continued online revenue growth and successful de-seasonalisation. The brand gained share in both markets. Fudge also performed well with the recovery of the professional haircare market and implementation of a new distribution strategy.

Sanctuary Spa maintained its momentum from FY21 despite a reduction in category demand post COVID-19 lockdowns, gaining approximately 5ppts of market share (Kantar World Panel MAT period ended 27 November 2021). The brand's biggest-ever campaign launch successfully aligned with the broader consumer trend of 'self-care'.

Adjusted operating profit from continuing operations for the region declined due to revenue performance in the UK, offset by Beauty performance. Operating profit was £19.6m (2020: £27.2m), in line with adjusted operating profit.

Asia Pacific

Revenue, at £84.4m, grew by +0.3%, with adjusted operating profit of £10.9m (2020: £11.7m).

Cussons Baby in Indonesia was flat, with growth in the higher margin categories of oils, cologne, liquid wash and hair lotion but this was offset by the choice to protect margin in the more highly-promoted wipes category. The brand continued to gain share in the higher margin segments of focus such as cologne and hair lotion (Nielsen, Scantrack November 2021).

In Australia / New Zealand, revenue growth in the key Home Care brands of Morning Fresh and Radiant was achieved despite the high consumption in the prior year during COVID-19 lockdowns. Morning Fresh continues to go from strength to strength as the number 1 brand in the manual dishwash segment, with share increased by 4ppts (up to 47%, Nielsen Australia Grocery Scan 26 weeks to 30 November 2021) on the back of portfolio development, continued marketing investment and increased ranging with retailers. The Beauty category rebounded strongly from the pandemic, with both St.Tropez and Fudge in double-digit revenue growth. Offsetting this were declines in Rafferty's Garden, which retained its clear category leadership, with a 29% share (Nielsen Australia Grocery Scan 26 weeks to 30 November 2021) in baby food, despite temporary wet food pouch supply shortages in Q1, and also the reduced ranging of our Reflect laundry brand in New Zealand.

Adjusted operating profit from continuing operations of £10.9m (2020: £11.7m) declined -2.7%. The key driver of this was the disposal of five:am, partially offset by improved margins from Price / Mix. Revenue Growth Management initiatives included the Radiant brand restage and a combination of price increases and promotional plan optimisations across the Rafferty's Garden portfolio, Beauty momentum in Australia and growth in the higher margin Baby segments in Indonesia.

Operating profit was £12.8m (2020: £11.1m), ahead of adjusted results due to the inclusion of the profit on disposal of five:am, which is classified as an adjusting item. See note 4 for further details.

Africa
 

Revenue of £102.2m was up +22.1% versus the prior period with our Personal Care, Home Care and Electricals categories all in growth. We experienced double-digit revenue growth in all Nigerian Must Win Brands as well as our larger Portfolio brands, including Stella, Canoe and Robb.

Market-leading Morning Fresh, with its 58% share in Nigeria (Nielsen MAT period ended 30 November 2021), successfully grew value share, but with a marginal decline in volume share as we increased price to protect margins. Cussons Baby gained both volume and value share. Premier both grew revenue and gained share (Nielsen MAT period ended 30 November 2021), helped by the Premier Cool national consumer promotion as well as a more strategic approach to trade promotions. The performance was also supported by improved instore visibility and NPD launches. Electricals showed strong double-digit revenue growth with price increases across our core ranges of freezers, generators, washing machines and fridges offsetting volume decline.

Adjusted operating profit from continuing operations of £8.4m (2020: £2.3m) increased as a result of the profitable revenue growth across all business units and an increase in the profit contribution from our Palm Oil joint venture, PZ Wilmar.

Statutory operating profit was £10.1m (2020: £0.8m) due to the profit on disposal of some residential properties in Nigeria, partially offset by costs incurred as part of the Nigeria Simplification project. See note 4 for further details.