PZ Cussons Plc, the parent company of PZ Cussons Nigeria, has announced plans to sell its African subsidiaries, citing the significant depreciation of the Naira as the primary factor.
In its ‘Results for the year ended 31 May 2024,’ Jonathan Myers, Chief Executive Officer of PZ Cussons, highlighted the unprecedented inflation and economic challenges faced by Nigerians. He noted that the depreciation of the Naira has severely impacted the company’s financial performance.
The company is considering either a partial or full sale of its African operations to reduce exposure to currency fluctuations. PZ Cussons has received multiple offers for the sale of its African business.
The company reported a foreign exchange loss of £107.5 million, attributed to the devaluation of the Naira, which fell by 70% between 31 May 2023 and 31 May 2024.
PZ Cussons is also exploring the sale of its St Tropez brand and aims to use any proceeds from these transactions to reduce its gross borrowings and net interest costs.
Myers commented on the impact of the Naira devaluation, stating, “The period was marked by a 70% devaluation of the Nigerian Naira, which has had significant implications on our reported financials. We have worked hard to mitigate the impact of this on the Group, while continuing to serve Nigerian consumers who are facing unprecedented inflation and economic difficulties.”