PZ Cussons has announced its intention to offload its African subsidiaries to potential buyers due to foreign exchange difficulties. This decision was disclosed in the company’s preliminary results for the fiscal year ending May 31, 2024, which are available on its website.
The parent company of PZ Cussons Nigeria is considering a partial or complete divestment to reduce its vulnerability to fluctuations in the devalued naira, which has depreciated by 70 per cent. The report stated,
“Throughout the past year, we have made consistent operational advancements and achieved the strategic objectives outlined at the beginning of the year, despite the challenging macro-economic environment.”
“The period was marked by a 70 per cent devaluation of the Nigerian naira, which has had significant implications on our reported financials. We have worked hard to mitigate this impact on the group while continuing to serve Nigerian consumers facing unprecedented inflation and economic difficulties.”
“The favourable trends of the second half of FY24 have continued into the new financial year. We are progressing with our plans to sell St. Tropez and have received several expressions of interest for our African business and the potential of our brands and people, which could lead to a partial or complete sale.
“Against this backdrop, we remain confident in the long-term potential for PZ Cussons as a business with stronger brands in a more focused portfolio, delivering sustainable, profitable growth,” the company said.
As of May 31, the Nigerian subsidiary of PZ Cussons is owned by PZ Cussons, which holds a 73.27 per cent stake, equivalent to 2.90 billion shares and valued at ₦45.53 billion as of September 18.