PZ Cussons on Wednesday announced that it is retaining its Africa business and sets out ambitious growth plans for the business, citing growth in its core business in 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”, it said in a statement published on its official website.
In April 2024, PZ Cussons announced plans to conduct a strategic review of its Africa operations. As part of the review, the Group announced the sale of its 50% 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. However, the company said after a review, its 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 expanding into new category adjacencies, including a focus on men’s grooming and beauty, with the existing brands of Venus, Imperial Leather, and Premier. It is also considering expansion in other African markets, which will be served from its 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 strong, double-digit revenue growth in our Africa business in the first half of the financial year. “The Board is confident that PZ Cussons is well placed to succeed through leveraging local insights and its brand heritage.
