By Peter Omopo
Consumer goods giant PZ Cussons has reversed its earlier decision to exit Africa, announcing that it will retain and expand its operations on the continent, driven by improving economic conditions in Nigeria and strong long-term population growth across Africa.
The announcement was made on Thursday in a statement published on the company’s website, following the conclusion of a strategic review of its Africa portfolio.
According to the statement, the board concluded that keeping the Africa business would deliver greater value to shareholders than selling, noting that the revised strategy aims to balance the Group’s presence across mature markets such as the United Kingdom and Australia/New Zealand, and emerging markets including Indonesia and Nigeria.
The company highlighted Africa’s demographic projections as a major factor in its decision.
“Africa’s population is forecast to grow by more than 900 million over the next 25 years, representing over half of global population growth. Nigeria alone is expected to add over 100 million people, supported by rapid urbanisation and expansion of the middle class,” the statement said.
PZ Cussons noted that Nigeria’s recent economic and currency stabilisation contributed to double-digit revenue growth in the first half of FY25 — a performance that reinforced confidence in the long-term viability of its Africa division.
As part of the restructuring process, the Group confirmed the sale of its 50 per cent stake in PZ Wilmar Limited, its edible oils joint venture in Nigeria, to partner Wilmar International for $70 million. Although the Africa business attracted substantial interest from multiple potential buyers, the company said it ultimately chose to retain the division.
The company emphasised its strong market presence in Nigeria, where nearly 80 per cent of revenue comes from brands holding the number one or two positions in their categories.
Three-Pillar Growth Strategy
PZ Cussons outlined a renewed Africa strategy built on three pillars:
- Core Growth
The company plans to deepen its presence in Nigeria, Ghana, and Kenya by strengthening brand building, improving distribution, enhancing in-store execution, expanding digital engagement, and upgrading revenue management systems.
The Group said it has doubled the number of directly served stores in Nigeria since FY22, contributing significantly to recent gains. - Category Expansion
This includes entering new adjacent categories — particularly men’s grooming and beauty — while leveraging established brands such as Imperial Leather, Venus, and Premier. - Pan-African Expansion
The Group will use its strong Nigerian and Kenyan operations as hubs for expansion into other African markets.
Financial Performance
PZ Cussons’ Africa business generated £141 million in revenue and £16 million in adjusted operating profit in FY25, representing 27 per cent and 30 per cent of the Group’s totals, respectively.
Following the sale of PZ Wilmar, the Africa division now comprises:
- Family Care and Electricals in Nigeria
- Family Care operations in Ghana and Kenya
The Group holds a 73.3% stake in PZ Cussons Nigeria Plc.
Headquartered in Manchester, UK, PZ Cussons said it remains confident in leveraging its historic brand equity, manufacturing scale, and route-to-market capabilities across Africa — especially as several multinational competitors have exited the region in recent years.
