PZ Cussons Nigeria Plc has announced plans to sell its African subsidiaries in response to significant financial challenges, particularly the 70% devaluation of the naira. The multinational consumer goods company stated that it is considering both partial and full sales to mitigate exposure to currency fluctuations.
In its preliminary results for the year ending May 31, 2024, PZ Cussons noted that the devaluation has severely impacted its financials, leading to a £107.5 million foreign exchange loss. The company has received multiple expressions of interest for its African business, recognizing the potential of its brands.
Despite these challenges, PZ Cussons reported improved revenue growth in its UK Personal Care segment and emphasized its commitment to transforming the business to maximize shareholder value. The company remains optimistic about its long-term prospects, focusing on stronger brands and a more streamlined portfolio.
Earlier this year, PZ Cussons faced setbacks in acquiring shares from minority shareholders in its Nigerian subsidiary and reported significant losses, including a N94.78 billion loss in the third quarter of 2023/24, compared to a profit in the previous year. The firm continues to navigate a difficult economic landscape, marked by high inflation and other macroeconomic challenges in Nigeria.
