PZ Cussons Retains African Business, Plans Expansion on Nigeria’s Economic Recovery

Consumer goods giant PZ Cussons has decided to retain its African operations, citing improving economic conditions in Nigeria and strong population growth across the continent, the company announced on Thursday in a statement published on its website.

The decision follows the conclusion of a strategic review of its Africa business, which the company had initiated in April 2024. While PZ Cussons sold its 50 per cent stake in PZ Wilmar Limited, its non-core edible oils business in Nigeria, to joint venture partner Wilmar International for $70m, the broader Africa portfolio will be retained.

“The Board has concluded that the greatest value for shareholders will be created by retaining the business and building a balanced portfolio between developed markets in the UK and Australia/New Zealand and emerging markets in Indonesia and Nigeria,” the statement said.

PZ Cussons highlighted Africa’s projected population surge as a key factor in the decision. The continent’s population is expected to grow by more than 900 million over the next 25 years, while Nigeria alone is forecast to add over 100 million people, supported by urbanisation and a rapidly growing middle class. The company noted that favourable economic and currency trends have already driven double-digit revenue growth in its African business in the first half of the financial year.

The company emphasised that nearly 80 per cent of Nigeria’s revenue comes from brands holding #1 or #2 positions in their categories, underlining its strong market presence.

PZ Cussons outlined a three-pillar growth strategy for Africa:

1. Core Growth: Strengthening operations in Nigeria, Kenya, and Ghana through brand building, expanded distribution, improved revenue management, enhanced in-store execution, and digital engagement, including doubling the number of directly served stores in Nigeria since FY22.

2. Category Expansion: Entering adjacent markets such as men’s grooming and beauty, leveraging existing brands like Venus, Imperial Leather, and Premier.

3. Pan-Africa Growth: Expanding into new African markets using established operations in Nigeria and Kenya as a base.

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

The Board expressed confidence that leveraging local insights, brand heritage, and manufacturing scale positions PZ Cussons to capitalise on Africa’s long-term growth opportunities.