PZ Cussons announced on Wednesday that it will keep its Africa business and pursue ambitious expansion plans, citing strong performance in its key markets of Nigeria, Kenya, and Ghana.
“…The fact that the Nigerian business has, since FY22, more than doubled the number of stores which it serves directly, has been a major contributor to the business’s growth in recent years,” the company said in a statement on its official website.
In April 2024, the company began a strategic review of its Africa operations, which included the sale of its 50% equity in PZ Wilmar Limited, its non-core edible oils venture in Nigeria, to Wilmar International Limited for $70 million.
However, after completing the review, the board “concluded that the offers received did not reflect the inherent value of the business and that the greatest value for shareholders will be created by retaining the business and building a Group portfolio balanced between its Developed markets of UK and ANZ and its Emerging markets of Indonesia and Nigeria”.
The company said it is moving into new category adjacencies, including men’s grooming and beauty, supported by its existing brands—Venus, Imperial Leather, and Premier.
It is also assessing expansion into additional African markets, which would be served through its current operations in Nigeria and Kenya.
According to the company, its long-term Africa strategy is driven by significant demographic potential, with the continent expected to add more than 900 million people over the next 25 years. Nigeria alone is projected to grow by over 100 million people, supported by rising urbanisation and expanding middle-income households. Recent economic and currency improvements have also supported strong double-digit revenue growth in the first half of the financial year.
The company added that its success will continue to rely on local market knowledge, strong brand heritage, and a robust manufacturing and distribution network—advantages that remain critical as several multinationals exit the Nigerian market. Nearly 80% of its revenue in Nigeria comes from brands ranked #1 or #2 in their categories.
Given past volatility and operational risks in the Nigerian market, the Group has introduced operational and financial safeguards to mitigate currency and business disruption risks. These measures focus on foreign exchange management and disciplined cash use, with the board reviewing compliance at each meeting.
Portfolio and Asset Optimisation
PZ Cussons previously announced plans to divest £30 million worth of surplus assets across the Group, most of which are in Africa. As part of the review, it has now identified an additional £7 million in non-core African assets expected to be monetised this financial year. The Group also sees further property optimisation opportunities over time.
The company said it will continue simplifying its operations to strengthen its leading brands across its core categories of Hygiene, Baby, and Beauty.
CEO Jonathan Myers said: “Since embarking on the strategic review of Africa, we have identified or agreed the sale of non-core or surplus assets totalling over £70 million.
“This, combined with continued cash generation of the Group, has significantly strengthened our balance sheet. After a thorough review of the remainder of the Africa business and careful evaluation of the offers received, the Board believes it is in the best interest of our stakeholders to retain the business.
“Africa is a market of great opportunity… momentum in our Africa business is strong, with double-digit revenue growth in the first half of the financial year.
“We will now look to build on this strong performance and extend our category leadership… With plans underpinned by appropriate guardrails… we are confident that we have a business that is set up for success.
“We expect Africa to be a significant contributor to overall Group revenue growth as we seek to build a winning portfolio of locally-loved brands… balanced between Developed and Emerging markets.”