PZ Cussons, a British multinational consumer goods company with its headquarters located in Manchester and owner of several top Nigerian brands, has chosen to maintain its Africa division, citing positive economic data in Nigeria and robust population growth forecasts for the continent.
Following the completion of an evaluation of its operations in Africa, the decision was revealed in a statement posted on its website on Thursday. Previously, the company announced in April 2024 that it would review its African business strategically.
As part of a larger group strategy to balance its portfolio between developed and emerging markets, the company recently announced that it would continue to operate in Africa and lay out ambitious growth plans.
According to the statement: “As part of the review, the Group announced the sale of its 50 per cent 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 $70m. The Group received significant levels of interest from a number of parties regarding the wider Africa portfolio.
“The Board has, however, concluded that the greatest value for shareholders will be created by retaining the business and building a Group portfolio balanced between its developed markets of the United Kingdom and Australia/New Zealand and its emerging markets of Indonesia and Nigeria,” it added.
PZ Cussons cited the anticipated population growth in Africa and Nigeria as a major contributing factor in its justification. It stated: “The strategy is based on the significant long-term opportunity in Africa, where the 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 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. The business will continue to benefit from its scale in manufacturing and route-to-market expertise, particularly in a competitive landscape that has seen a number of multinationals exit the market in recent years. Nearly 80 per cent of Nigeria’s revenue is generated from brands holding #1 or #2 positions in their categories,” it added.
BrandSpur news brand reports that building on the improved momentum achieved in recent years, PZ Cussons is now workingu to build a winning portfolio of locally loved brands.
Continuing, it revealed that the first pillar of its strategy is core growth, which focuses on bolstering its operations in Ghana, Kenya, and Nigeria by continuously providing best-in-class brand building, increasing distribution, enhancing in-store execution, improving revenue growth management, and promoting digital engagement. Recent growth has been greatly aided by these initiatives, which include doubling the number of directly served stores in Nigeria since FY22.
The second pillar is category expansion, which entails leveraging current brands like Venus, Imperial Leather, and Premier to enter new adjacent categories, especially men’s grooming and beauty. Pan-Africa growth, which includes leveraging its established footprints in Kenya and Nigeria to expand into other African markets, is the third pillar.
In FY25, PZ Cussons’ Africa division brought in £141 million in revenue and £16 million in adjusted operating profit, which accounted for 27% and 30% of the Group’s totals, respectively. The Group’s Africa business now includes Family Care and Electricals in Nigeria, as well as Family Care operations in Ghana and Kenya, after selling its 50% stake in PZ Wilmar. The Group’s ownership of PZ Cussons Nigeria Plc is 73.3%.
