PZ Cussons Plc, the parent company of PZ Cussons Nigeria, has announced plans to sell its African subsidiaries, primarily due to the depreciation of the Naira.
In the company’s financial report for the year ending May 31, 2024, Chief Executive Officer Jonathan Myers explained that Nigerians are experiencing high inflation and economic challenges, which have significantly affected the company’s finances.
PZ Cussons is considering either a partial or full sale of its African operations to lessen its exposure to changes in the Naira’s value. The company has received various inquiries about purchasing its African business.
Myers noted that the Naira’s devaluation has led to a foreign exchange loss of £107.5 million. This loss primarily came from converting and settling U.S. dollar liabilities in their Nigerian subsidiaries, as the Naira dropped by 70% between May 31, 2023, and May 31, 2024.
The company is also in the process of selling its St Tropez brand and is exploring potential transactions for its African business. Any proceeds from these sales will be used to reduce the company’s debt.
Myers stated, “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.”
In April, Myers mentioned that the company was reviewing its brands and operations in response to the economic challenges in Nigeria.
