UK consumer giant makes U-turn over Africa exit plan as Nigeria’s economy steadies

The decision, published on Thursday, December 11, on the company’s website, follows a strategic review launched in April 2024 and comes at a time when several multinationals have withdrawn from Nigeria due to currency volatility and rising operating costs.

PZ Cussons, known for brands such as Imperial Leather and Premier, said it now sees greater value in deepening its African footprint than in divesting.

As part of the review, the company finalised the sale of its 50 per cent stake in PZ Wilmar, its edible oils joint venture in Nigeria, to Wilmar International for $70 million.

The group noted that it received extensive interest from potential buyers for a broader set of African assets, yet ultimately determined that retaining the business would deliver better returns.

In its statement, the company said the Board concluded that shareholders would benefit most from a balanced portfolio spanning developed markets in the United Kingdom and Australia and emerging markets led by Indonesia and Nigeria.

The firm pointed to Nigeria’s recent currency stabilisation and an upswing in performance across its regional operations, with double-digit revenue growth recorded in the first half of the financial year.

The company highlighted Africa’s robust demographic trajectory as a central factor in its decision. It noted that the continent’s population is projected to grow by more than 900 million people over the next quarter century, accounting for more than half of global population growth.

Nigeria alone is forecast to grow by more than 100 million people, driven by rapid urbanisation and the expansion of middle-income households.

The Board said PZ Cussons remains well-positioned to compete, citing its long presence in key African markets, strong brand equity, and scale in manufacturing and distribution.

Nearly 80 per cent of Nigeria’s revenue, it said, comes from products that hold category leading positions.

To drive its renewed strategy, the company has outlined three core pillars. The first, labelled core growth, focuses on strengthening its business in Nigeria, Kenya, and Ghana through stronger brand building, wider distribution, better revenue management, and more digital engagement.

The firm said it has doubled the number of stores it serves directly in Nigeria since the 2022 financial year.

The second pillar centres on expanding into adjacent categories, especially men’s grooming and beauty, leveraging existing brands such as Venus, Imperial Leather, and Premier.

The third pillar targets Pan African expansion, using Nigeria and Kenya as base markets for entry into new territories.

In the 2025 financial year, PZ Cussons’ Africa division generated 141 million pounds, the equivalent of about $182 million, and produced 16 million pounds, about $21 million, in adjusted operating profit.

Africa accounted for 27 per cent of group revenue and 30 per cent of operating profit.

PZ Cussons is headquartered in Manchester and listed on the London Stock Exchange.