PZ Cussons has announced its intention to withdraw from Africa’s business landscape.
During a statement on Wednesday, April 24, the company revealed that it has initiated a strategic assessment of its African operations with the aim of exiting the continent, partly due to economic difficulties in Nigeria.
PZ Cussons clarified that its sales in Nigeria plummeted by 48% as a result of naira devaluation and inflation. The CEO of the company, Jonathan Myers, emphasized the importance of looking towards the future while respecting the company’s heritage, mentioning that the review’s outcomes could entail changes in ownership.
Myers commented, “The macro-economic challenges and complexities associated with operating in Nigeria are significant, and there is much more to do to unlock the full potential of the business. As such, we have undertaken a strategic review of our brands and geographies and have embarked on plans to transform our portfolio, refocusing on where the business can be most competitive.”
The company’s CEO further explained that apart from the challenges posed by its exposure in Nigeria, the group is excessively intricate for its scale, with financial and human resources spread too thinly to generate returns.
Additionally, Myers stated that although the company has received numerous offers over the years, it has not yet expressed interest in divesting its shares in the African consumer goods firm.