British consumer goods company, PZ Cussons Plc is reportedly at the warm-up stage of completely or partially quitting operations in Africa, Premium Times reports.
PZ is the maker of popular brands like Canoe, Premier Cool and Devon Kings. Africa accounts for 28.7 per cent of the group’s revenue, with Nigeria being its largest and most diverse single market.
Nigeria and Kenya account for 28.7 per cent of the group’s revenue in Africa. The company, however, revealed they have been approached for a sale.
“We have received a number of expressions of interest for our African business, recognising the potential of our brands and people, which could lead to a partial or full sale,” the parent company was quoted as saying in a Thursday statement, September 19, by PZ Cussons Nigeria, its local subsidiary.
PZ Cussons Nigeria said it will go public once a formal notification about any sale from its parent company is in place.
The 2024 financial statement released in London on Wednesday showed net profit went down to 39.7 per cent after a 57 per cent slide in the naira against the Pounds sterling during the review period.
PZ Cussons holds a 73.3 per cent stake in its Nigerian unit. The Nigerian division reported its first annual loss (N76 billion) in years, in August, following a surge of 3,000 per cent in foreign exchange loss
“Our FY24 reported results fell short of our initial expectations, primarily due to the macroeconomic developments in Nigeria which, as we indicated last year, would significantly affect our results,” the group disclosed in its earnings report.
“The 70% currency devaluation over the course of the financial year has, therefore, caused a significant impact not only on our local business but also on the profitability and financial position of the Group.”