11th Dec 2025 13:14
(Alliance News) - PZ Cussons PLC on Thursday said it will retain its Africa business after a strategic review, concluding that offers received for the division did not reflect its value, and instead set out plans to grow the unit while tightening financial guardrails to reduce currency and operational risks.
The parent company of soap brands such as Imperial Leather and Carex said it intends to build a "balanced" group spanning developed markets such as the UK and Australia and emerging markets including Indonesia and Nigeria.
It added that Africa will be a "significant contributor" to future revenue growth.
PZ Cussons launched the strategic review in April 2024 after extreme inflation and a sharp devaluation of the Nigerian naira pushed its Africa operations to a GBP95.9 million loss in financial 2024.
While the group received "significant levels of interest" in the wider portfolio, it said none of the offers fully recognised the inherent value of the business.
As part of the review, the group agreed to sell its 50% stake in Nigerian edible oils joint venture PZ Wilmar to partner Wilmar International for USD70 million, with completion expected shortly.
Alongside retaining the core African operations, PZ Cussons said it will continue portfolio optimisation and plans to sell around GBP30 million of surplus assets across the group, most of them in Africa.
It also identified an additional GBP7 million of non-core African assets earmarked for disposal in the current financial year.
Setting out its growth plan, the company said it will focus on three areas: strengthening core markets in Nigeria, Kenya and Ghana; expanding into new categories such as men's grooming and beauty; and pursuing "Pan-Africa" growth from its existing footprint.
To mitigate volatility in Nigeria, PZ Cussons said it will introduce foreign-exchange guardrails covering the generation and use of cash, with oversight from the board at every meeting.
Chief Executive Officer Jonathan Myers said the Africa division had returned to double-digit revenue growth in the first half of the year amid a more stable macroeconomic backdrop.
"Africa is a market of great opportunity," Myers said. "Given PZ Cussons' deep heritage there, and the strength of our brands and operational capabilities, we are well-placed to win over the longer term."
He said the decision to retain the African business, backed by stronger balance sheet metrics and tighter risk controls, "sets up the business for success" as the group targets category leadership across hygiene, baby and beauty.
The company will outline further details on its Africa strategy at a capital markets event on February 11, alongside its interim results.
Shares in PZ Cussons were 1.7% lower at 75.20 pence in London on Thursday afternoon.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Pz Cussons