Consumer goods giant PZ Cussons has decided to retain its African operations, citing improving economic indicators in Nigeria and the continent’s strong population growth projections as key drivers of its long-term strategy. The company disclosed the decision on Thursday via a statement on its website, following the conclusion of a strategic review of its Africa business.
The review, first announced in April 2024, examined the future of PZ Cussons’ operations across the continent and considered potential divestments. While the company sold its 50 per cent stake in PZ Wilmar Limited, its non-core edible oils business in Nigeria, to its joint venture partner Wilmar International for $70 million, it will retain its broader African portfolio.
The company said the decision to maintain its Africa operations reflects a focus on creating long-term shareholder value by balancing its portfolio across developed and emerging markets, including the United Kingdom, Australia/New Zealand, Indonesia, and Nigeria.
“Africa represents a significant long-term opportunity, with the population forecast to grow by more than 900 million over the next 25 years, representing over half of total global population growth. Nigeria alone is expected to add more than 100 million people, benefiting further from urbanisation and the rise of a growing middle class,” the company said.
PZ Cussons highlighted that recent economic and currency trends in Nigeria have been favourable, contributing to double-digit revenue growth in the first half of its financial year. The company also pointed to its strong market positions, noting that nearly 80 per cent of Nigerian revenue comes from brands holding either #1 or #2 positions in their categories.
The company outlined a three-pillar growth strategy for Africa:
- Core Growth: Strengthening operations in Nigeria, Kenya, and Ghana through brand building, expanded distribution, revenue management, improved in-store execution, and increased digital engagement. Notably, PZ Cussons has doubled the number of directly served stores in Nigeria since FY22.
- Category Expansion: Entering adjacent product categories such as men’s grooming and beauty while leveraging existing brands like Venus, Imperial Leather, and Premier.
- Pan-Africa Growth: Expanding into new African markets by leveraging established operations in Nigeria and Kenya.
PZ Cussons’ African business contributed £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. Following the sale of PZ Wilmar, the business now comprises Family Care and Electricals in Nigeria, and Family Care operations in Ghana and Kenya. The Group holds a 73.3 per cent stake in PZ Cussons Nigeria Plc.
Headquartered in Manchester, UK, PZ Cussons remains committed to leveraging local insights, brand heritage, and operational scale to capitalize on growth opportunities in Africa, even as some multinationals have exited the continent in recent years.