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The macro-economic challenges and complexities associated with operating in Nigeria are significant and there is much more to do to unlock the full potential of the business.
Jonathan Myers, the CEO of PZ Cussons Global, says the group is considering to sell its production plants in Africa and relocate to where the business can be most competitive.
In a statement, Myers said the group is considering to exiting the continent, partly driven by economic challenges in Nigeria such as naira devaluation and inflation, which has significantly impacted the company’s sales and operations,and resulted in a 48 percent sales plunge in financial year 2023.
He emphasized the importance of looking towards the future while respecting the company’s past, indicating that the review’s outcomes could include changes in ownership.
Myers added: “The macro-economic challenges and complexities associated with operating in Nigeria are significant and there is much more to do to unlock the full potential of the business.”
As such, we have undertaken a strategic review of our brands and geographies and have embarked on plans to transform our portfolio, refocusing on ."
“In addition to the challenges of the significant exposure to Nigeria, the group is too complex for its size, with financial and human resources spread too thinly to generate consistent returns.
“This means its competitive advantages have been constrained in comparison to those of both larger multinational companies and some focused, smaller ones.”
“We have to have an eye on the future as well as a respect for the past. There could be many permutations of the outcome, which could include a change in ownership. We’re going to be objective and not emotional in how we make this decision,” he stated.
Founded 140 years ago , PZ Cussons employ over 2,600 people across its operations in Europe, North America, Asia Pacific and Africa.
