PZ Cussons has announced that it is retaining its Africa business and setting out ambitious growth plans for it as part of a wider Group strategy balanced between developed and emerging markets.
Recall that 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 per cent equity interest in PZ Wilmar Limited – its non-core edible oils business in Nigeria – to Wilmar International Limited, its joint venture (JV) partner, for a total consideration of $70 million.
Nigeria’s Economic Rebound Supports Double-Digit Growth for PZ Cussons
The Group received significant levels of interest from several parties regarding the wider Africa portfolio.
According to a new statement, 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 the United Kingdom and Australia/New Zealand and its emerging markets of Indonesia and Nigeria.
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“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.
New Focus on Expanding Core and Category Businesses Across Africa
This, the Group said, will be delivered through three key pillars. One is the core business, which involves growing the core business in Nigeria, Kenya, and Ghana through brand-building, distribution expansion, revenue growth management, in-store execution, and digital use.
“These factors, including the fact that the Nigerian business has, since FY22, more than doubled the number of stores it serves directly, have been major contributors to the business’ growth in recent years,” the Group noted.
Two is the category side, focusing on expansion into new category adjacencies, including 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, served from Nigeria and Kenya.
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“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 global population growth. Nigeria’s population alone is forecast to increase by over 100 million, benefitting from urbanisation and rapidly growing middle classes.”
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Recent economic and currency trends have been more favourable, supporting double-digit revenue growth in PZ Cussons’ Africa business in the first half of the financial year.
The company posted a sharp turnaround in its first-quarter (Q1) earnings, with profit buoyed by foreign exchange (FX) gains that helped offset rising costs and extend a sales rebound. PZ Cussons Nigeria Plc 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. Earnings per share rose to N3.29 from a negative N1.16.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.
