PZ Cussons Contemplates Exiting African Market Amid Economic Challenges

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PZ Cussons Plc announced yesterday that it has initiated a strategic review of its business in Africa, with the possibility of exiting the continent. This decision comes as a response to economic difficulties in Nigeria, including naira devaluation and inflation, which have substantially impacted the company’s sales and operations, resulting in a significant 48 percent drop in sales.

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Jonathan Myers, CEO of PZ Cussons, stressed the importance of looking ahead while acknowledging the company’s history, indicating that the review might lead to changes in ownership.

Myers stated, “The macro-economic challenges and complexities associated with operating in Nigeria are significant, and there is much more to do to unlock the full potential of the business.”

He further added, “As such, we have undertaken a strategic review of our brands and geographies and have embarked on plans to transform our portfolio, refocusing on where the business can be most competitive.”

PZ also mentioned, “In addition to the challenges of significant exposure to Nigeria, the group is too complex for its size, with financial and human resources spread too thinly to generate consistent returns.”

Myers confirmed that the group had received numerous unsolicited approaches over recent months and years. However, he clarified that no decision has been made yet regarding a potential sale.

PZ Cussons, established in Sierra Leone 140 years ago, derives almost 30 percent of its sales from Africa, despite the recent decline. With annual sales of around $622 million, the company operates across various regions and product lines.

Several consumer goods groups, including Unilever and GSK, have been reevaluating their operations in Nigeria due to ongoing foreign exchange shortages, leading to adjustments and scaling back of operations.


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Babatunde Akinsola
Babatunde Akinsolahttps://naija247news.com
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

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