PZ CUSSONS has suspended plans to sell its African subsidiaries, citing improvements in Nigeria’s economic fundamentals.

In a statement forwarded to Economy Post on Thursday, the consumer goods giant said it will retain its Africa business and pursue ‘ambitious growth plans’ as part of a broader strategy to balance its portfolio between developed markets and emerging ones.

The company launched a strategic review of its Africa operations in April 2024, which included selling its 50 percent stake in PZ Wilmar Limited – its non-core edible oils business in Nigeria – to joint venture partner Wilmar International for $70 million.

Although the review attracted significant interest from potential buyers, the board concluded that shareholder value would be maximised by keeping the Africa portfolio and building a diversified Group anchored in the UK, Australia/New Zealand, Indonesia and Nigeria.

“The Group is now setting out plans to build a winning portfolio of locally loved brands, building on the improved momentum achieved in recent years,” PZ Cussons said.

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The strategy will rest on three pillars, one of which is strengthening the core busines. “This includes expanding in Nigeria, Kenya and Ghana through stronger brand-building, broader distribution, revenue growth management, in-store execution and digital adoption. The company noted that its Nigerian arm has more than doubled the number of stores it serves directly since FY22,” the Group noted.

The second pillar rests on category expansion. PZ Cussons plans to enter adjacent categories, especially men’s grooming and beauty, leveraging brands such as Venus, Imperial Leather and Premier.

Also, the third pillar focuses on the consumer goods’ giant’s pan-African growth. “The Group aims to scale into new African markets using its existing Nigerian and Kenyan operations as hubs.”

The strategy, it said, is anchored on Africa’s long-term growth potential. The continent’s population is expected to rise by over 900 million in the next 25 years, which is more than half of global population growth, while Nigeria alone is projected to add more than 100 million people, backed by rapid urbanisation and rising middle-class spending.

“Recent macroeconomic and currency trends in Nigeria have also turned more favourable, supporting double-digit revenue growth in the first half of the financial year,” the Group explained.

PZ Cussons said it remains well positioned to thrive by leveraging local insights, brand heritage and manufacturing scale, especially as some multinational rivals exit the Nigerian market. Nearly 80 percent of its Nigeria revenue comes from brands that hold No. 1 or No. 2 positions in their categories, it noted.

PZ Cussons Nigeria rebounds

PZ Cussons Nigeria Plc recorded a sharp turnaround in its first-quarter (Q1) results, boosted by foreign exchange (FX) gains that offset cost pressures and extended a sales rebound.

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The company posted a net profit of N13.49 billion for the three months ended August 31, reversing a N4.65 billion loss a year earlier, according to its filing with the Nigerian Exchange. Earnings per share rose to N3.29, from a negative N1.16.

The Q1 profit is 34 percent higher than the N10.06 billion earned in the entire 2025 financial year, underscoring how stabilising the naira has improved earnings.

A major driver was a N3.57 billion FX gain, compared with a N9.28 billion loss in the same period last year. This swing accounted for the bulk of the recovery in operating profit, which climbed to N21.59 billion from a N4.10 billion loss.

Revenue rose 48 percent to N59.01 billion, reflecting resilient consumer demand despite inflation above 20 percent.

Gross profit increased to N15.90 billion from N12.23 billion, although selling and distribution expenses surged 55 percent to N5.66 billion, and administrative costs rose 20 percent to N4.37 billion.

Profit before tax jumped to N21.54 billion, versus a N5.22 billion loss last year. A charge of N8.05 billion, net income stood at N13.49 billion.