PZ Cussons To Sell Kardashian Favourite St Tropez Tanning Brand To Tackle Debt

By Reuters
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PZ Cussons To Sell Kardashian Favourite St Tropez Tanning Brand To Tackle Debt

Soap maker PZ Cussons is exploring the sale of its popular self-tanning brand St Tropez and other assets to reduce its debt, the company said in a statement.

St Tropez is popular with celebrities, including reality television star Kim Kardashian and American model Ashley Graham, and sells across 28 countries, according to the brand's website.

Investec analysts said the sale of St Tropez alone could raise £100 million (€116.3 million), and given the market value of the group is about £400 million (€465.2 million) that could prompt a reassessment of the investment case for the consumer goods company as a whole.

The company, which also owns hygiene and care brands including Carex hand gel and Imperial Leather soap, did not name the other brands it might offload.

However, it said it would divest some of its manufacturing facilities and land in Thailand and Indonesia, and a number of properties in Africa.


The Manchester-based firm has been hit by the devaluation of the Nigerian naira, which has pushed up its debt and lowered shareholder returns.

"The macro-economic challenges and complexities associated with operating in Nigeria are significant and there is much more to do to unlock the full potential of the business," CEO Jonathan Myers said.

Quarterly Performance

PZ Cussons, which counts Nigeria as one of its four major markets, reported a 23% fall in revenue for the three months ended 2 March due to the naira devaluation.

Group revenue increased by 6.4% on a like-for-like basis, with volume grew 0.2% due to improved momentum in UK brands.


In Europe and America, the company reported a 1.4% decline in reported revenue, while in the Asia Pacific it saw a 10.7% drop.

However, it kept its annual guidance unchanged and forecast gross debt to fall to £160-180 million (€186.1-€209.3 million) by the end of this financial year, from £251 million (€291.9 million) at the end of the last one.

News by Reuters, additional reporting by ESM.

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