PZ Cussons has reversed i[]ts earlier plan to exit Africa, announcing on Wednesday that it will retain and expand its operations on the continent following improved economic conditions and sustained business growth in Nigeria, Kenya, and Ghana.
In a statement published on its official website, the consumer goods company said its African business has delivered strong performance, with the Nigerian unit more than doubling the number of stores it serves directly since FY22. The company noted that this expansion was a major driver of recent growth.
PZ Cussons Africa Business Review
PZ Cussons launched a strategic review of its Africa operations in April 2024, which included plans to sell its 50% stake in PZ Wilmar Limited, its non-core edible oils joint venture in Nigeria to Wilmar International for $70 million. However, after evaluating offers, the Board concluded that they did not reflect the “inherent value” of the business.
According to the Board, retaining the Africa business offers the most value to shareholders while allowing the Group to maintain a balanced portfolio across its developed markets (UK and ANZ) and emerging markets (Indonesia and Nigeria).
The company also disclosed that it will pursue category expansion with increased focus on beauty and men’s grooming, leveraging its well-known brands such as Venus, Imperial Leather, and Premier. It is also assessing opportunities to expand into additional African markets, supported by its operational bases in Nigeria and Kenya.
PZ Cussons highlighted Africa’s demographic outlook as a key factor in its decision, projecting the continent’s population to grow by over 900 million in the next 25 years. Nigeria alone is expected to add more than 100 million people, driving urbanisation and enlarging the consumer base.
The company reported strong double-digit revenue growth across its Africa business in the first half of the financial year, supported by improved economic and currency stability in Nigeria.
Despite the positive momentum, the Board acknowledged historical volatility in Nigeria and outlined new risk-mitigation measures, particularly around foreign exchange management and cash utilisation. These guardrails will be reviewed at every Board meeting.
Asset Optimisation and Ongoing Divestments
As part of its broader restructuring, the Group had earlier announced a £30 million surplus asset divestment programme, mostly in Africa. It has now identified an additional £7 million in non-core assets on the continent, expected to be realised within the current financial year.
The company plans to simplify its operations and strengthen its core categories—Hygiene, Baby, and Beauty—while exploring further property optimisation opportunities.
Chief Executive Officer Jonathan Myers said the Group has already identified or completed sales of over £70 million in non-core assets since the Africa review began. Combined with ongoing cash generation, the Group’s financial position has improved significantly.
Myers emphasised that Africa remains a high-opportunity market for the company.
“With nearly 80% of our revenue in Nigeria already coming from brands with #1 or #2 positions, and with supportive economic reforms in recent months, momentum in our Africa business is strong,” he said.
He added that with appropriate guardrails in place, PZ Cussons expects Africa to remain a significant contributor to the Group’s growth, enabling it to build a winning portfolio of trusted local brands across both developed and emerging markets.