PZ Cussons retains Africa business as takeover bids disappoint
African business remains a critical component of PZ Cusson’s global portfolio, contributing significantly to its revenue and profit.
AFRICA – PZ Cussons has officially concluded its strategic review of its African operations and decided to retain its Africa business, citing that the offers received did not reflect the actual value of its African assets.
The company emphasized that Africa remains a high-potential market, driven by strong demographic growth and improving economic conditions, especially in Nigeria. This decision supports a broader group strategy focused on balancing developed and emerging markets, with Africa expected to be a major contributor to future growth.
The board undertook a comprehensive review after initiating the process in April 2024, prompted by Nigeria’s inflation and currency volatility.
Chief Executive Officer of PZ Cussons, Jonathan Myers, stated, “This, combined with continued cash generation of the Group, has significantly strengthened our balance sheet.”
“After a thorough review of the remainder of the Africa business and careful evaluation of the offers received, the Board believes it is in the best interest of our stakeholders to retain the business.”
While PZ Cussons did agree to sell non-core assets, including its 50% stake in PZ Wilmar for USD 70 million, none of the offers for the core African business adequately recognized its inherent value.
The Africa operations generated £141 million (USD 180.5 million) in revenue and £16 million (USD 20.5 million) in adjusted operating profit in FY25, representing 27% and 30% of the group’s total, respectively.
The business now comprises Family Care and Electricals in Nigeria, and Family Care in Ghana and Kenya, with PZ Cussons holding a 73.3% stake in PZ Cussons Nigeria plc.
Looking ahead, PZ Cussons will pursue ambitious growth plans in Africa, focusing on three key pillars: strengthening core markets in Nigeria, Kenya, and Ghana; expanding into new categories such as men’s grooming and beauty; and scaling across more of Africa from its established bases.
The company will leverage its local insights, brand heritage, and operational expertise, benefiting from its scale in manufacturing and distribution.
Nearly 80% of Nigeria’s revenue comes from brands holding #1 or #2 positions in their categories, underscoring its competitive advantage.
The board is confident that retaining the Africa business, backed by a strengthened balance sheet and tighter risk controls, positions PZ Cussons for long-term success.
The company will continue portfolio optimization, with plans to sell around £30 million (USD 38.4 million) of surplus assets and an additional £7 million (USD 9.0 million) of non-core African assets in the current financial year.
Africa’s projected population growth and PZ Cussons’ deep roots in the region reinforce its commitment to building a portfolio of winning, locally-loved brands across hygiene, baby, and beauty categories.
This strategic shift underscores PZ Cussons’ belief that Africa offers significant opportunities, especially as other multinationals exit the market.
The company is setting out clear growth guardrails to minimize risk and volatility, aiming to maximize value for stakeholders through continued investment and expansion in Africa.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
