PZ Cussons Announces Sale Of Nigerian Assets In Response To FX Crisis

PZ Cussons Announces Sale Of Nigerian Assets In Response To FX Crisis

PZ Cussons, a multinational consumer goods company, has announced plans to sell its African subsidiaries to interested buyers. The parent company of PZ Cussons Nigeria is considering a partial or full sale to reduce its exposure to the significant fluctuations of the naira, which has devalued by 70%……CONTINUE READING 

In its preliminary results for the year ending May 31, 2024, the company highlighted ongoing operational progress despite macroeconomic challenges. The report stated, “We have made continued operational progress and delivered against our strategic priorities while addressing the impact of a 70% devaluation of the naira on our financials.”

The company reported improved revenue in its UK Personal Care division, with profitable double-digit growth. Regarding the sale of its subsidiaries, PZ Cussons noted receiving several expressions of interest for its African business, which indicates recognition of the potential value of its brands.

PZ Cussons expressed optimism about its future, stating, “We remain confident in the long-term potential of PZ Cussons, focusing on delivering sustainable, profitable growth.”

The company reported a foreign exchange loss of £107.5 million, primarily due to the naira’s devaluation affecting USD-denominated liabilities in its Nigerian operations. CEO Jonathan Myers previously mentioned that the company is reviewing its brands and markets due to the complex macroeconomic landscape in Nigeria.

PZ Cussons holds a 73.27% stake in its Nigerian subsidiary, which has faced financial difficulties, posting a loss of N94.78 billion in the third quarter of 2023/24 compared to a gain of N11.213 billion in the same period the previous year. The firm has struggled with a negative net asset position, as liabilities exceed assets by N46.42 billion due to the naira’s depreciation.

In a recent notice, the company informed stakeholders that its closed period began on September 1, 2024, and will last until 24 hours after the release of its unaudited financial statements for the first quarter ending August 31, 2024.