PZ Cussons

Website: PZ Cussons
Index: FTSE Small Cap
EPIC: PZC
Supersector: Personal and Household Goods
Sector: Personal Goods
Subsector: Personal Products
Market Cap: £343.41M
Payout Frequency: Semi-Annual

PZ Cussons Dividend Analysis and Summary

Dividend Declaration – Key Details

Type: Interim dividend
Amount: 1.50p per share (unchanged year-on-year)
Ex-dividend date: 05/03/2026
Record date: 06/03/2026
Payment date: 09/04/2026
Cash cost: ~£6.3m (company disclosure)
Recent dividend context: FY25 final dividend of 2.10p was paid on 27/11/2025
Policy guidance: Board reiterates a progressive dividend within its capital allocation framework

Coverage and Financial Support

Earnings cover (H1 FY26, adjusted): 4.37p EPS vs 1.50p DPS (~2.9x cover)
Earnings cover (H1 FY26, statutory): 1.40p EPS vs 1.50p DPS (~0.9x; impacted by adjusting items and higher tax)
Cash flow cover: Free cash flow £23.2m in H1 vs dividend cash cost ~£6.3m (~3.7x cover)
Leverage: Net debt £84.3m; net debt/EBITDA ~1.1x (LTM), at the low end of the 1.0–1.5x target range
Guidance: FY26 adjusted operating profit outlook raised to £53–57m

Management/Policy Signals

Capital allocation hierarchy: Maintain 1.0–1.5x net debt/EBITDA (ex-Nigeria cash), a progressive dividend, and consider bolt-on M&A alongside potential cash returns
Balance sheet strengthening from portfolio actions (Wilmar JV disposal; surplus asset sales) supports ongoing distributions

Structural Changes and Notable Items

Disposal: Completed sale of 50% stake in PZ Wilmar JV; proceeds received to date £48.5m with further receipts expected
Asset disposals: Ongoing sales of non-operating/surplus assets (cash proceeds YTD noted; additional £20–25m targeted in FY26)
Strategy review concluded: Retention of Africa business; renewed focus on four lead markets and cost savings of £5–10m in FY26

Dividend Sustainability – Analyst View

Sustainability: The interim dividend appears well covered by adjusted earnings (~2.9x) and free cash flow (~3.7x). Balance sheet metrics are conservative with leverage around 1.1x, and further disposal proceeds strengthen liquidity.
Growth trajectory: The dividend is held flat at 1.50p for the interim, but management’s “progressive dividend” stance, upgraded profit guidance, and cost savings suggest capacity to resume growth over time, subject to FX/tax headwinds and capital allocation to M&A.
Financial support: Broad-based LFL growth (9.5%), improved margins, lower interest costs, and positive FCF support dividend maintenance. Note the gap between adjusted and statutory earnings due to adjusting items and a higher ETR.

Risks and Flags to Dividend Stability

FX/Nigeria exposure: H1 benefited from Naira appreciation and non-cash FX gains; reversal could pressure margins and cash conversion.
Tax uncertainty: Increased tax provision to £35.6m following an adverse court ruling elevates cash tax risk; adjusted ETR guided around current elevated levels (~28.2%).
Adjusted vs statutory earnings: Statutory EPS (1.40p) is below the interim dividend, highlighting reliance on adjusted metrics and ongoing adjusting items.
Execution/mix: H2-weighted marketing spend, St. Tropez turnaround, and continued portfolio simplification could introduce earnings/FCF timing variability.
Capital allocation competition: Bolt-on M&A and potential additional shareholder returns may compete with near-term dividend growth, though policy prioritises a progressive dividend.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
06/03/2025	09/04/2025	Interim	1.50p	GBX
30/10/2025	27/11/2025	Final	2.10p	GBX

Total (Annual Dividends Per Share): 3.60p

Dividend Yield = Annual Dividends Per Share (3.60p) ÷ Share Price (77.8p) = 4.63%

Ex Dividend Date	Payment Date	Type	Amount	Currency
05/03/2026	09/04/2026	Interim	1.5000p	GBX
30/10/2025	27/11/2025	Final	2.10p	GBX
06/03/2025	09/04/2025	Interim	1.50p	GBX
31/10/2024	04/12/2024	Final	2.10p	GBX
07/03/2024	04/04/2024	Interim	1.50p	GBX
02/11/2023	30/11/2023	Final	3.73p	GBX
09/03/2023	06/04/2023	Interim	2.67p	GBX
20/10/2022	30/11/2022	Final	3.73p	GBX
10/03/2022	07/04/2022	Interim	2.67p	GBX
21/10/2021	30/11/2021	Final	3.42p	GBX
11/02/2021	01/04/2021	Interim	2.67p	GBX
08/10/2020	03/12/2020	Final	3.13p	GBX
13/02/2020	06/04/2020	Interim	2.67p	GBX
08/08/2019	03/10/2019	Final	5.61p	GBX
14/02/2019	08/04/2019	Interim	2.67p	GBX
09/08/2018	04/10/2018	Final	5.61p	GBX
15/02/2018	06/04/2018	Interim	2.67p	GBX
10/08/2017	05/10/2017	Final	5.61p	GBX
16/02/2017	07/04/2017	Interim	2.67p	GBX
11/08/2016	06/10/2016	Final	5.50p	GBX
18/02/2016	07/04/2016	Interim	2.61p	GBX
13/08/2015	01/10/2015	Final	5.39p	GBX
19/02/2015	07/04/2015	Interim	2.61p	GBX
13/08/2014	01/10/2014	Final	5.23p	GBX
19/02/2014	07/04/2014	Interim	2.53p	GBX
14/08/2013	01/10/2013	Final	5.04p	GBX
20/02/2013	08/04/2013	Interim	2.35p	GBX

Year	Interim	Final	Currency	Total	Change
2024	1.500	2.100	GBX	3.600	-43.750
2023	2.670	3.730	GBX	6.400	0.000
2022	2.670	3.730	GBX	6.400	5.090
2021	2.670	3.420	GBX	6.090	5.000
2020	2.670	3.130	GBX	5.800	-29.950
2019	2.670	5.610	GBX	8.280	0.000
2018	2.670	5.610	GBX	8.280	0.000
2017	2.670	5.610	GBX	8.280	2.090
2016	2.610	5.500	GBX	8.110	1.370
2015	2.610	5.390	GBX	8.000	3.090
2014	2.530	5.230	GBX	7.760	5.000
2013	2.350	5.040	GBX	7.390

Number of Shares:

Payment	Paid	Amount
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