Thursday, September 19, 2024 - British consumer goods company, PZ Cussons Plc is reportedly at the warm-up stage of completely or partially quitting operations in Africa, Premium Times reports.
PZ is the maker of popular brands like Canoe, Premier Cool
and Devon Kings. Africa accounts for 28.7 per cent of the group’s revenue,
with Nigeria being its largest and most diverse single market.
Nigeria and Kenya account for 28.7 per cent of the group’s
revenue in Africa. The company, however, revealed they have been approached for
a sale.
“We have received a number of expressions of interest for
our African business, recognising the potential of our brands and people, which
could lead to a partial or full sale,” the parent company was quoted as saying
in a Thursday statement, September 19, by PZ Cussons Nigeria, its local
subsidiary.
PZ Cussons Nigeria said it will go public once a formal
notification about any sale from its parent company is in place.
The 2024 financial statement released in London on Wednesday
showed net profit went down to 39.7 per cent after a 57 per cent slide in the
naira against the Pounds sterling during the review period.
PZ Cussons holds a 73.3 per cent stake in its Nigerian unit.
The Nigerian division reported its first annual loss (N76 billion) in years, in
August, following a surge of 3,000 per cent in foreign exchange loss
“Our FY24 reported results fell short of our initial
expectations, primarily due to the macroeconomic developments in Nigeria which,
as we indicated last year, would significantly affect our results,” the group
disclosed in its earnings report.
“The 70% currency devaluation over the course of the
financial year has, therefore, caused a significant impact not only on our
local business but also on the profitability and financial position of the
Group.”
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