PZ Cussons drops plan to quit Africa, unveils growth strategy

PZ Cussons says it has opted to retain its Africa operations and unveiled fresh expansion plans driven by renewed growth momentum in its key markets of Nigeria, Kenya and Ghana.

This followed the conclusion of a strategic review, outlining an ambitious plan to strengthen the company’s presence across key markets on the continent.

The company disclosed this in a statement on its website on Thursday.

The company noted that the renewed focus formed part of a broader strategy to build a portfolio balanced between Developed markets such as the United Kingdom and Australia/New Zealand, and emerging markets including Indonesia and Nigeria.

The review, which began in April 2024, had included the sale of the Group’s 50 per cent stake in PZ Wilmar Ltd., its non-core edible oils joint venture in Nigeria to its partner, Wilmar International, for 70 million dollars.

According to the company, the review attracted substantial interest from potential buyers.

However, the Board resolved that shareholder value would be better maximised by retaining the Africa business and pursuing long-term growth.

PZ Cussons stated that its new strategic direction for Africa would focus on building a winning portfolio of “locally loved brands,” anchored on three major pillars.

The first pillar was core growth across Nigeria, Kenya and Ghana.

This will involve plans to deepen brand-building efforts, expand distribution, improve in-store execution, strengthen revenue-growth management, and enhance digital engagement.

The firm noted that its Nigerian subsidiary had doubled the number of directly served retail outlets since the 2022 financial year, boosting recent performance.

The second pillar targets category expansion into adjacencies such as men’s grooming and beauty, leveraging established brands including Venus, Imperial Leather and Premier.

The third pillar focuses on pan-African expansion, with new markets expected to be supplied through its existing operations in Nigeria and Kenya.

Highlighting Africa’s long-term potential, the Group said the continent’s population was projected to grow by more than 900 million over the next 25 years.

This represented over half of global population growth. Nigeria alone is expected to add over 100 million people, supported by rapid urbanisation and an expanding middle class.

PZ Cussons added that recent economic and currency improvements had supported double-digit revenue growth in the first half of its financial year.

The board expressed confidence in the company’s prospects, citing deep local insights, decades of brand heritage and strong manufacturing and distribution capabilities, especially as several multinationals had exited the market in recent years.

It noted that nearly 80 per cent of revenue in Nigeria was generated from brands that hold the number-one or number-two position in their categories.

“In the 2025 financial year, Africa contributed £141 million in revenue and £16 million in adjusted operating profit, representing 27 per cent and 30 per cent of the Group’s totals respectively.

“Following the divestment from PZ Wilmar, its Africa operations now comprise Family Care and Electricals in Nigeria, and Family Care businesses in Ghana and Kenya.

“The Group holds a 73.3 per cent stake in PZ Cussons Nigeria Plc,”

Commenting, Jonathan Myers, Chief Executive Officer of PZ Cussons, said, “Since embarking on the strategic review of Africa, we have identified or agreed the sale of non-core or surplus assets totalling over £70 million.

“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.

“Africa is a market of great opportunity. Given PZ Cussons’ deep heritage there, and given the strength of our brands and operational capabilities, we are well-placed to win over the longer term.

“Benefitting from a more stable economic environment in recent months and with positive fiscal reform, momentum in our Africa business is strong, with double-digit revenue growth in the first half of the financial year.

“We will now look to build on this strong performance and extend our category leadership, with nearly 80 per cent of our revenue in Nigeria already coming from brands with #1 or #2 positions.

“With plans underpinned by appropriate guardrails,.established to reduce risk and manage volatility, we are confident that we have a business that is set up for success.

“We expect Africa to be a significant contributor to overall Group revenue growth as we seek to build a winning portfolio of locally-loved brands, balanced between Developed and Emerging markets.”