Consumer goods firm PZ Cussons has reversed its earlier considerations to exit Africa, citing improving economic conditions in Nigeria and the continent’s long-term growth prospects. The company announced the decision on Thursday following the conclusion of a strategic review of its African operations.
Earlier in April 2024, PZ Cussons had signalled a review of its African business. While it sold its 50 per cent stake in PZ Wilmar Limited, its non-core edible oils joint venture in Nigeria, to partner Wilmar International for $70 million, the broader Africa portfolio will now be retained and expanded.
The company pointed to Africa’s rapidly growing population as a key factor, noting the continent is projected to add more than 900 million people over the next 25 years, with Nigeria alone expected to grow by over 100 million. Urbanisation, rising middle classes, and stabilising economic conditions have already supported double-digit revenue growth in the first half of the financial year.
Nearly 80 per cent of Nigeria’s revenue comes from brands ranked first or second in their categories, reflecting PZ Cussons’ strong market position. The company said this provides a solid foundation for continued growth and expansion.
PZ Cussons outlined a three-pillar growth strategy for Africa:
1. Core Growth: Strengthening operations in Nigeria, Kenya, and Ghana by improving brand performance, expanding distribution, enhancing in-store execution, and boosting digital engagement. The number of directly served stores in Nigeria has already doubled since FY22.
2. Category Expansion: Entering adjacent markets such as men’s grooming and beauty, building on established brands like Venus, Imperial Leather, and Premier.
3. Pan-Africa Growth: Expanding into new African markets leveraging existing operations in Nigeria and Kenya.
In FY25, the company’s African operations generated £141 million in revenue and £16 million in adjusted operating profit, accounting for 27 per cent and 30 per cent of the group’s totals, respectively. After selling PZ Wilmar, Africa operations now include Family Care and Electricals in Nigeria, and Family Care units in Ghana and Kenya, with 73.3 per cent ownership in PZ Cussons Nigeria Plc.
The Board said the decision reflects confidence in Africa’s long-term potential and PZ Cussons’ ability to leverage its local insights, brand heritage, and manufacturing scale to expand in a market where many multinationals have exited in recent years.
This move signals a renewed commitment to Africa, positioning Nigeria and other key markets as central to the company’s growth strategy.
Leave a Reply