PZ Cussons Retains Africa Business, Citing 900 Million Population Growth Forecast and Improving Nigerian Economy.
Following a strategic review, PZ Cussons has chosen to keep its Africa operations, a decision based on the promising economic indicators in Nigeria and robust population growth projections throughout the continent. The consumer goods company announced its choice on Thursday, detailing ambitious growth plans to balance its global portfolio between developed and emerging markets. This latest move reverses the uncertainty created when PZ Cussons first announced the review of its African business in April 2024.
As part of the review, PZ Cussons announced a strategic divestment: the sale of its 50 per cent equity interest in PZ Wilmar Limited, its non-core edible oils business in Nigeria, to its joint venture partner, Wilmar International Limited, for $70 million. Despite receiving significant interest from multiple parties for the wider Africa portfolio, the company decided against a full sale. The statement partly read: “The Board has, however, concluded that the greatest value for shareholders will be created by retaining the business and building a Group portfolio balanced between its developed markets of the United Kingdom and Australia/New Zealand and its emerging markets of Indonesia and Nigeria.” PZ Cussons further justified its rationale by highlighting Africa’s and Nigeria’s projected population surge as a key factor.
PZ Cussons highlighted the “significant long-term opportunity in Africa,” noting that the continent’s population is expected to grow by over 900 million in the next 25 years (more than half of total global growth). Nigeria’s population alone is forecast to increase by over 100 million, benefiting from urbanization and a rapidly growing middle class. The company noted that recent favorable economic and currency trends have already supported double-digit revenue growth in the Africa business during the first half of the financial year.
PZ Cussons expressed confidence in its ability to succeed by leveraging local insights, brand heritage, and existing manufacturing scale, especially in a competitive landscape where other multinationals have exited. They stressed the strength of their brands, noting that nearly 80% of Nigeria’s revenue comes from brands holding #1 or #2 positions in their categories.
The company detailed a three-pillar strategy moving forward:
- Core Growth: Focuses on strengthening business in Nigeria, Kenya, and Ghana by improving brand building, expanding distribution (including doubling directly served stores in Nigeria since FY22), and driving digital engagement.
- Category Expansion: Involves entering new adjacent categories like men’s grooming and beauty, leveraging existing brands such as Venus and Imperial Leather.
- Pan-Africa Growth: Plans to expand into other African markets using established footprints in Nigeria and Kenya.
The Africa business generated £141 million in revenue and £16 million in adjusted operating profit in FY25, representing 27% and 30% of the Group’s totals, respectively. Following the PZ Wilmar sale, the Africa business now comprises Family Care and Electricals in Nigeria, and Family Care operations in Ghana and Kenya, with the Group holding a 73.3% stake in PZ Cussons Nigeria Plc.
