PZ Cussons has announced the suspension of plans to sell its African subsidiaries on the back of an improvement in Nigeria’s economic fundamentals.
In a statement seen by BusinessDay on Thursday, the consumer goods company said it is retaining its Africa business and has sets out ambitious growth plans for it, as part of a wider Group strategy built upon a portfolio balanced between developed and emerging markets.
In April 2024, PZ Cussons had announced plans to conduct a strategic review of its Africa operations. As part of the review, the Group announced the sale of its 50 percent equity interest in PZ Wilmar Limited, its non-core edible oils business in Nigeria, to Wilmar International Limited, its Joint Venture partner for a total consideration of $70 million.
The Group received significant levels of interest from a number of parties regarding the wider Africa portfolio. The statement said the board has, however, concluded that the greatest value for shareholders will be created by retaining the business and building a Group portfolio balanced between its developed markets of United Kingdom and Australia/New Zealand and its emerging markets of Indonesia and Nigeria.
“The Group is now setting out plans to build a winning portfolio of locally-loved brands, building on the improved momentum achieved in recent years,” the company said.
This, the Group said, will be delivered through three key pillars. One is the core business, which encompasses growing the core business in Nigeria, Kenya and Ghana through consistently delivering fundamentals of brand-building, distribution expansion, revenue growth management, in-store execution and use of digital.
“These factors, including the fact that the Nigerian business has, since FY22, more than doubled the number of stores which it serves directly, have been major contributors to the business’ growth in recent years,” the group noted.
Two is the category expansion side, involving the expansion into new category adjacencies, including a focus on men’s grooming and beauty, with the existing brands of Venus, Imperial Leather and Premier.
Three is the pan-Africa growth, which incorporates the expansion in other African markets, which will be served from the existing footprint in Nigeria and Kenya.
“The strategy is based on the significant long-term opportunity in Africa where population is forecast to grow by more than 900 million over the next 25 years, representing over half of total global population growth.
“Nigeria’s population alone is forecast to increase by over 100 million further benefitting from urbanisation and rapidly growing middle classes. Recent economic and currency trends have been more favourable, supporting double-digit revenue growth in our Africa business in the first half of the financial year.”
The statement said the board is confident that PZ Cussons is well placed to succeed through leveraging local insights and its brand heritage.
“The business will continue to benefit from its scale in manufacturing and route-to-market expertise, particularly against a competitive landscape which has seen a number of multi-nationals exit the market in recent years. Nearly 80% of Nigeria revenue is generated from brands holding #1 or #2 positions in their categories.”
PZ Cussons’ rebound
PZ Cussons Nigeria Plc posted a sharp turnaround in its first-quarter (Q1) earnings, with profit buoyed by foreign exchange gains that helped offset rising costs and extend a sales rebound.
The consumer goods maker, a subsidiary of the UK-listed PZ Cussons Group, reported a net profit of N13.49 billion for the three months ended Aug. 31, reversing a loss of N4.65 billion in the same period last year, according to its filing to the Nigerian Exchange. Earnings per share rose to N3.29 from a negative N1.16.
The after-tax profit for the period is 34 percent higher than N10.06 billion recorded in the full year of 2025, highlighting the significance of naira stability in the company’s earnings.
A key driver was a N3.57 billion foreign exchange gain, compared with a N9.28 billion loss a year earlier, reflecting the impact of naira volatility on companies that import raw materials and hold foreign-denominated balances. That swing alone accounted for the bulk of the turnaround in operating profit, which climbed to N21.59 billion from a loss of N4.10 billion last year.
Revenue also contributed, rising 48 percent to N59.01 billion, as consumer demand held up despite inflation running above 20 percent.
Gross profit advanced to N15.90 billion from N12.23 billion, though higher selling and distribution expenses — which rose 55 percent to N5.66 billion — and administrative costs, up 20 percent at N4.37 billion, continued to pressure margins.
The company’s profit before tax surged to N21.54 billion, compared with a loss of N5.22 billion in the prior year. After income tax expenses of N8.05 billion, net income stood at N13.49 billion.