In a dramatic twist, PZ Cussons has announced plans to retain its Africa business with ambitious growth plans, citing growth in its core business in Nigeria in particular.
Recall that the company had in April 2024 announced plans to strategically review its Africa operations, stating its readiness to sell its 50% equity interest in PZ Wilmar Limited, its non-core edible oils business in Nigeria.
However, in a statement on its official website, 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.
“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 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 board is confident that PZ Cussons is well placed to succeed through leveraging local insights and its brand heritage,” the statement added.
Commenting on the development, Jonathan Myers, Chief Executive Officer of PZ Cussons, said: “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. Given PZ Cussons’ deep heritage there, and given the strength of our brands and operational capabilities, we are well-placed to win over the longer term. Benefitting from a more stable economic environment in recent months and with positive fiscal reform, 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 nearly 80% of our revenue in Nigeria already coming from brands with #1 or #2 positions.”
-Advertisement-
Grab our latest Magazine, "Kelechi Amadi-Obi - Transcending the worlds of Law, Visual Art and Photography". Get your order fast and stress free.
For more details about Newswire Law&Events Magazine, kindly reach out to us on 08039218044, 09070309355. Email: newswiremagazine@yahoo.co.uk. You will be glad you did
Download E-MagazineDo you want to be heard, your events covered, your articles published, or need to advertise your products and services on our Blog and Magazine, reach out to us at Newswire Law and Events, you will be glad you did. For more details about our services, please call: 08039218044, 09070309355. Email: newswiremagazine@yahoo.co.uk
