Eshioromeh Sebastian, Abuja
In a significant strategic reversal, consumer goods company PZ Cussons has announced it will retain its Africa business, abandoning earlier considerations of an exit.
The decision, announced on Thursday, is attributed largely to improving economic conditions and promising growth indicators in Nigeria.
The move follows a comprehensive review of the company’s African operations, which was initiated in April 2024. Despite receiving considerable interest from potential buyers for its Africa portfolio, the Board concluded that maintaining ownership would deliver greater long-term value for shareholders.
Central to the company’s renewed commitment is the continent’s demographic outlook. PZ Cussons highlighted forecasts showing Africa’s population is set to expand by over 900 million in the next 25 years.
Nigeria alone is projected to add more than 100 million people, coupled with increasing urbanisation and a growing middle class.
The company pointed to “more favourable” recent economic and currency trends in Nigeria, which have already supported double-digit revenue growth in its Africa business during the first half of the current financial year.
As part of the same strategic review, PZ Cussons confirmed the sale of its 50% stake in the non-core edible oils business, PZ Wilmar Limited, to its joint venture partner Wilmar International Limited for $70 million.
The Africa operations now focus on Family Care and Electricals in Nigeria, along with Family Care in Ghana and Kenya.
PZ Cussons, which holds a 73.3% stake in the publicly traded PZ Cussons Nigeria Plc, outlined a three-pillar strategy for the retained business. This includes strengthening its core operations, expanding into new categories like men’s grooming and beauty, and leveraging its Nigerian and Kenyan footprints for growth across the continent.
The Africa business contributed £141 million in revenue and £16 million in adjusted operating profit in the last financial year, representing 27% and 30% of the Group’s totals, respectively.
The company stated it is now focused on building a “winning portfolio of locally loved brands.”
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