PZ Cussons Considers Leaving Africa After 140yrs Over Nigeria’s Sales Plunge

There are indications that PZ Cussons Plc may leave Africa after sales plunged in its Nigeria operation.

PZ Cussons has put its Africa business under review, potentially pivoting away from the region in which it was founded to invest in its remaining business and pay down debt.

According to media platform, the British soap maker was set up in Sierra Leone 140 years ago and now gets almost 30 per cent of its sales from Africa, even after a 48 per cent decline over the past year. With annual sales of around £500 million ($622 million), it is spread across many geographies and product lines. It also operates in Europe, the Americas and the Asia-Pacific region.

Chief executive officer, Jonathan Myers, said: “We have to have an eye on the future as well as a respect for the past. There could be many permutations of the outcome, which could include a change in ownership. We are going to be objective and not emotional in how we make this decision.”

The company’s shares rose five per cent on April 24, 2024, but down 50 per cent over the past 12 months.
PZ Cussons also plans to sell fake tan brand, St. Tropez. It said the label has grown significantly since the company bought it in 2010, adding that significant long-term growth potential remains in the US and new markets. It could be worth £100 million, Investec analyst Matthew Webb said in a note.
Myers said that the company will focus on branded items for babies, as well as beauty and hygiene products, citing recent acquisition, Childs Farm, which makes toiletries for babies with sensitive skin as an example.


UK, Australia, New Zealand and Indonesia are Myers’ priority markets.
Following a strategic review, the board has decided that on top of the difficulties in Nigeria, the company is too complicated for its size. In a financial update, it cited “financial and human resources spread too thinly to generate consistent returns.”

In Nigeria, the company sells a range of products including Morning Fresh dishwashing liquid, refrigerators and cooking oil. The devaluation of the naira means sales fell sharply in pound terms. It also stoked inflation which has hit consumers’ purchasing power.
In March, regulators rejected PZ Cussons’s application to buy out the 27 per cent of its Nigerian arm that it does not own, in order to delist it. The regulator said the offer price of N23 per share was unfair.

The PZ Cussons Nigeria in a release by the company secretary, Olubukola Olonade-Agaga, said: “It notifies the Nigerian Exchange Limited and the investing public that the Securities and Exchange Commission (SEC) has declined the Company’s request for its No Objection to PZ Cussons (Holdings) Limited’s (the majority shareholder) intention to acquire the shares held by all the other shareholders of PZCN at an offer price of N23 per share.”

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Posted: at 26-04-2024 06:09 AM (1 week ago) | Addicted Hero

Unilever left.
Procter &  Gambles left.
GlaxoSmithKline also halted manufacturing operations in Nigeria
The current FORIEGN exchange crunch and the devaluation of the naira is responsible for this!

But don’t worry we will survive without omo, sunlight and lux!

Nigeria go survive….

Posted: at 26-04-2024 06:59 AM (1 week ago) | Gistmaniac

My Yoruba brothers will blame peter obi.... Well is not bad for them to leave... Atleast the rate of unemployment will increased to 70%• but we are still hopeful Nigeria will be better under tinubu... I visited immigration passport office the other day. Omo people dey leave this country in drones... Na only me remain oooo

Posted: at 26-04-2024 08:42 AM (1 week ago) | Upcoming

WHAT BUHARI/ TINUBU CAN NOT DO, DOES NOT EXIST...

Posted: at 26-04-2024 09:04 AM (1 week ago) | Gistmaniac

They should go!!! they are using us anyway  milking us like cow

Posted: at 26-04-2024 10:30 AM (1 week ago) | Grande Master