PZ Cussons opts to keep Africa operations, citing Nigeria’s rebound and strong population growth across the continent
A consumer goods group, PZ Cussons, has decided to retain its Africa business, pointing to improving economic indicators in Nigeria and robust population projections throughout Africa as the basis for continuing its presence there.
The decision was communicated in a statement published on the company’s website on Thursday, following a review of its Africa operations. Earlier reporting from PUNCH Online noted that PZ Cussons announced in April 2024 a strategic review of its African business.
In the latest update, the company confirmed it will maintain its Africa operations and laid out ambitious growth plans as part of a broader group strategy designed to balance its portfolio between developed and emerging markets.
“As part of the review, the Group announced the sale of its 50 percent equity interest in PZ Wilmar Limited, its non-core edible oils business in Nigeria, to Wilmar International Limited, its joint venture partner, for a total consideration of $70 million. The Group received substantial interest from several parties regarding the wider Africa portfolio.
“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 established markets of the United Kingdom and Australia/New Zealand and its growing markets of Indonesia and Nigeria,” the statement read.
To justify the move, PZ Cussons highlighted Africa’s overall and Nigeria’s population growth as a key driver.
“The strategy is anchored on the considerable long-term opportunity in Africa, where the population is expected to rise by more than 900 million over the next 25 years, representing over half of global population growth. Nigeria’s population alone is forecast to increase by more than 100 million, boosted by urbanisation and a rapidly expanding middle class. Recent economic and currency trends have been more favorable, supporting double-digit revenue growth in our Africa business in the first half of the financial year.
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“The Board is confident that PZ Cussons is well positioned to succeed by leveraging local insights and its brand heritage. The business will continue to benefit from its manufacturing scale and route-to-market expertise, particularly in a landscape where several multinationals have exited the market in recent years. Almost 80% of Nigeria’s revenue is generated by brands holding either the number 1 or number 2 positions in their categories.”
PZ Cussons added that it is working to build a portfolio of locally beloved brands, building on the momentum gained in recent years.
The company outlined three strategic pillars:
- Core growth: strengthening its Nigerian, Kenyan, and Ghanaian operations through top-tier brand building, broader distribution, improved Revenue Growth Management, better in-store execution, and enhanced digital engagement. Initiatives such as doubling the number of directly served stores in Nigeria since FY22 have driven much of the recent growth.
- Category expansion: venturing into adjacent categories, notably men’s grooming and beauty, while leveraging existing brands like Venus, Imperial Leather, and Premier.
- Pan-Africa growth: expanding into additional African markets by leveraging the company’s footprints in Nigeria and Kenya.
Financially, PZ Cussons’ Africa operations generated £141 million in revenue and £16 million in adjusted operating profit in FY25, representing 27% and 30% of the Group’s totals, respectively. After selling its 50% stake in PZ Wilmar, the Africa segment now comprises Family Care and Electricals in Nigeria and Family Care in Ghana and Kenya. The group also holds a 73.3% stake in PZ Cussons Nigeria Plc.
PZ Cussons is a publicly listed consumer goods company headquartered in Manchester, United Kingdom.
