PZ Cussons examines Kenyan business amid broader African reassessment
The company aims to ensure its structure supports sustainable returns, focusing on a more competitive and resilient portfolio.
KENYA – PZ Cussons, the company behind brands like Imperial Leather and Carex, has initiated a formal review of its Kenyan operations as part of a comprehensive reassessment of its African business activities.
This review includes the Family Care unit in Kenya, as well as its operations in Nigeria and Ghana, and the Electricals division in Nigeria.
The move has created uncertainty about the future of PZ Cussons East Africa, where the company manufactures and distributes personal and home care products.
The evaluation follows a period of declining sales and profits across several brands.
For the fiscal year ended May 31, 2025, the group’s revenue decreased by 2.7% to £513.8 million (approximately USD 692.7 million), and adjusted operating profit fell by 5.8% to £54.9 million (approximately USD 73.74 million), with profit margins contracting to 10.7%.
In Africa, revenue decreased by 7.1%, primarily due to a 38% depreciation of the Nigerian Naira compared to the previous year.
Adjusted operating profit in Africa declined by nearly 23% to £23.4 million (USD 31.4 million), with margins shrinking by 340 basis points.
Despite these challenges, the company noted that its Kenyan unit experienced good volume-led growth, particularly driven by modern trade channels.
However, this growth may not be sufficient to overcome the broad macroeconomic and currency pressures affecting the region.
The company also reversed plans to sell its struggling St. Tropez skincare brand, deciding instead to restructure the U.S. business and rebuild revenue streams.
CEO Jonathan Myers emphasized the company’s commitment to long-term shareholder value, stating that the strategic review of its African business, comprising Family Care operations in Nigeria, Ghana, Kenya, and the Electricals business in Nigeria, is ongoing.
This strategic reassessment comes shortly after PZ Cussons sold its 50% stake in the PZ Wilmar edible oils joint venture, aiming to exit non-core categories, lower its exposure in Nigeria, and strengthen its financial position.
Upon completion, Wilmar will assume full ownership of PZ Wilmar, consolidating its position in Nigeria’s edible oils market.
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