PZ Cussons retains Africa business, citing strong performance in Nigeria, Kenya, and Ghana, with plans for expansion and category growth
PZ Cussons Plc on Wednesday announced it will retain its Africa business, outlining ambitious growth plans for its operations across Nigeria, Kenya, and Ghana. The company cited strong performance in core markets as a key factor in the decision.
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The statement, published on the company’s official website, highlighted that the Nigerian business has more than doubled the number of stores served directly since the 2022 financial year, contributing significantly to overall growth.
In April 2024, PZ Cussons had signalled a strategic review of its Africa operations and sold its 50 percent stake in PZ Wilmar Limited, a non-core edible oils business in Nigeria, to Wilmar International Limited for $70 million.
However, after evaluating offers for the remainder of the Africa business, the board concluded that retaining operations would deliver greater shareholder value.
The company plans to expand into new product categories, including men’s grooming and beauty, leveraging existing brands such as Venus, Imperial Leather, and Premier.
There are also considerations to extend operations into other African markets, which will be served from current Nigerian and Kenyan bases.
“The strategy is based on the significant long-term opportunity in Africa, where the population is forecast to grow by more than 900 million over the next 25 years, representing over half of total global population growth,” the statement said.
It noted that Nigeria’s population alone is expected to increase by more than 100 million, supported by urbanisation and a growing middle class.
PZ Cussons emphasised its operational and financial measures to mitigate risks associated with currency volatility and business disruption in Nigeria, including enhanced foreign exchange management and cash generation protocols.
The Group also plans to optimise its property portfolio, realising £7 million from non-core assets in Africa during the current financial year, and maintain focus on its core categories of hygiene, baby, and beauty products.
Jonathan Myers, Chief Executive Officer, said: “Africa is a market of great opportunity. Given PZ Cussons’ deep heritage, strong brands, and operational capabilities, we are well-placed to win over the longer term.
Momentum in our Africa business is strong, with double-digit revenue growth in the first half of the financial year.
With appropriate guardrails in place to manage risk, we are confident in the business’s long-term success.”
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The company projects that Africa will remain a significant contributor to overall Group revenue growth as it seeks to balance its portfolio between Developed and Emerging markets.
