PZ Cussons Drops Plan to Exit Nigeria, Other African Countries, Gives Reason

Consumer goods giant PZ Cussons has announced it will retain its Africa operations, citing improving economic indicators in Nigeria and promising population growth projections across the continent.

The decision was revealed in a statement on the company’s website on Thursday, following the conclusion of a strategic review of its African business. In April 2024, PZ Cussons had announced plans to review its operations in Africa.

In the statement, the company confirmed its commitment to the region and outlined ambitious growth plans as part of a broader strategy aimed at balancing its portfolio between developed and emerging markets.

“As part of the review, the Group sold its 50 percent equity interest in PZ Wilmar Limited, its non-core edible oils business in Nigeria, to Wilmar International Limited, its joint venture partner, for $70 million.

“While we received significant interest from various parties regarding the wider Africa portfolio, the Board concluded that retaining the business would create the greatest value for shareholders,” the statement read.

PZ Cussons highlighted Africa’s and Nigeria’s projected population growth as a key factor in the decision.

“Africa’s population is forecast to grow by more than 900 million over the next 25 years, representing over half of global population growth. Nigeria alone is expected to grow by over 100 million, supported by urbanisation and a rapidly expanding middle class.

“Recent economic and currency trends have also been favourable, supporting double-digit revenue growth in our Africa business in the first half of the financial year,” the statement added.

The company said it is well-positioned to leverage local insights, brand heritage, and scale in manufacturing and distribution, especially as several multinationals have exited the market in recent years. Nearly 80 per cent of Nigeria’s revenue comes from brands holding #1 or #2 positions in their categories.

PZ Cussons’ growth strategy in Africa is built on three pillars: Core Growth, which involves strengthening business in Nigeria, Kenya, and Ghana through brand building, expanded distribution, improved revenue growth management, enhanced in-store execution, and digital engagement. Since FY22, the company has doubled the number of directly served stores in Nigeria.

Category Expansion: Entering new adjacent categories, particularly men’s grooming and beauty, leveraging established brands such as Venus, Imperial Leather, and Premier.

Pan-Africa Growth: Expanding into other African markets using its established presence in Nigeria and Kenya.

The company reported that its Africa business generated £141 million in revenue and £16 million in adjusted operating profit in FY25, representing 27 per cent and 30 per cent of the Group’s totals, respectively. After the sale of its 50 per cent stake in PZ Wilmar, the African business now comprises Family Care and Electricals in Nigeria, and Family Care operations in Ghana and Kenya, with PZ Cussons holding a 73.3 per cent stake in PZ Cussons Nigeria Plc.

PZ Cussons is a publicly listed consumer goods company headquartered in Manchester, UK, and continues to focus on building a portfolio of locally loved brands in Africa.