PZ Cussons Plc, the parent company of PZ Cussons Nigeria, has announced plans to sell its African subsidiaries, citing the severe depreciation of the Naira as a key factor behind the decision. The company revealed its intentions while reviewing its financial results for the year ending May 31, 2024.
Jonathan Myers, the CEO of PZ Cussons, highlighted the difficult economic environment Nigerians are currently facing, marked by unprecedented inflation and a sharp devaluation of the Naira. The currency’s depreciation has heavily impacted the company’s financial performance, leading to significant foreign exchange losses.
PZ Cussons reported a foreign exchange loss of £107.5 million due to the translation and settlement of U.S. dollar-denominated liabilities in its Nigerian subsidiaries, primarily caused by the Naira’s 70% decline in value between May 2023 and May 2024.
The company is exploring either a partial or full sale of its African operations and has already received several expressions of interest. This move, according to PZ Cussons, is aimed at reducing its exposure to the volatility of the Naira exchange rate. Any proceeds from the sale would be used to reduce the company’s debt and interest costs.
Myers emphasized the company’s efforts to mitigate the impact of Nigeria’s economic challenges while continuing to serve local consumers despite the ongoing inflation crisis.
