P&G inks five-year supply deal with Communisis

Communisis has extended its managed services contract with consumer goods giant Procter & Gamble for a further five years.

The new deal takes over from the existing contract, which expires at the end of this year, and runs until 31 December 2019.

Communisis provides P&G with external brand building services across its European operations. This includes managing point-of-purchase store merchandising and some direct-to-consumer marketing.

Communisis chief executive Andy Blundell said: “This is great news. It gives us the underpin to grow the relationship further. We’re very excited about it.”

The value of the deal was not disclosed. However, Communisis’ fast-growing overseas sales business, which jumped to £48.6m in revenues in its most recent financial year, is principally related to supplying P&G.

Overseas sales have grown from zero five years ago and now account for 18% of total group sales of £270.1m. Communisis is set to hit its target of 20% ahead of plan.

The group’s overseas wing currently operates in 15 European countries from 11 sites, and involves around 100 staff.

Communisis plans to expand this geographically and into adjacent service areas.

Blundell described it as “people and technology value”.

When Communisis released its year end results last month it said the infrastructure was now in place to grow its international business “substantially” both for P&G and other consumer goods brands with a similar requirement to optimise supply chains.

P&G had worldwide sales of $84bn (£50.2bn) last year. Its brands span beauty, personal care, home care and grooming and include Olay, Braun, Duracell, Gillette, Ariel, and Max Factor.

It has 25 brands that are classed as billion dollar brands in their own right.

Communisis shares rose 3p to 68.5p on the news.