PZ Cussons, a manufacturer of household items and soap, has indicated that it may be selling its African business, citing many indications of interest. In its results presentation for the year ending May 31, 2024, the company revealed that revenues had dropped by 19.6% to £527.9 million.
Despite efforts to lessen the consequences of Nigeria’s foreign exchange depreciation, the company’s financials for the year under review were significantly impacted by the 70% decrease in the value of the naira, according to Chief Executive Officer (CEO) Jonathan Myers.
Additionally, it stated that its strategy to sell St. Tropez is moving forward and that it may decide to sell all or part of its African company.
Continuing, it said: “The period was marked by a 70% devaluation of the Nigerian Naira, which has had significant implications on our reported financials. We have worked hard to mitigate the impact of this on the Group while continuing to serve Nigerian consumers who are facing unprecedented inflation and economic difficulties.”
Furthering: “The favourable trends of the second half of FY24 have continued into the new financial year. We are progressing with our plans to sell St. Tropez and have received several expressions of interest for our African business, recognising the potential of our brands and people, which could lead to a partial or full sale.
“Against this backdrop, we remain confident in the long-term potential for PZ Cussons as a business with stronger brands in a more focused portfolio, delivering sustainable, profitable growth,” it added.
The Board of PZ Cussons Nigeria has responded to the company’s disclosure by stating that it has not been informed by the parent company about the possible sale of its African division, BrandSpur news brand reports.
The company announced earlier in April that it is evaluating its operations in Africa to minimise risk and increase shareholder value. Nigeria’s macroeconomic problems have had a substantial negative influence on PZ Cussons’ international business over the past year.
Furthermore, the Securities and Exchange Commission’s (SEC) rejection of the company’s petition to delist from the Nigerian Stock Exchange caused a setback.
Despite a 34% increase in revenue to N152.24 billion, PZ Cussons Nigeria recorded a loss after tax of N76.02 billion for the FY 2024, which concluded on May 31. This was a dramatic departure from the N14.35 billion profit the corporation reported after taxes the year before, to a N76.03 billion loss for the same period in 2024.
