PZ’s Stock Price Up 9.36% as Coy Halts Plan to Sell Nigerian Subsidiary

Kayode Tokede

The stock price of PZ Cusson Nigeria Plc, yesterday gained 9.36 per cent or N3.85 per share to close at N45.00 per share amid the Group decision to suspend the exit of its subsidiaries in Nigeria and other  African countries.

The group in a statement obtained by THISDAY said it is reversing its earlier plans to exit the African market, citing improved economic conditions in Nigeria and an estimated population growth that would support the multinational company’s operation.

The development, according to the company, is part of its “ambitious growth plans” to build a winning portfolio of locally loved brands, building on the improved momentum achieved in recent years.

“The strategy is based on the significant long-term opportunity in Africa, where population is forecast to grow by more than 900 million over the next 25 years, representing over half of total global population growth,” the company said in a statement.

“Nigeria’s population alone is forecast to increase by over 100 million, further benefiting from urbanisation and rapidly growing middle classes. Recent economic and currency trends have been more favourable, supporting strong, double-digit revenue growth in our Africa business in the first half of the financial year.”

The company’s board said it is confident that PZ Cussons is well placed to succeed through leveraging local insights and its brand heritage, adding that the firm will continue to benefit from its scale in manufacturing and route-to-market expertise, particularly against a competitive landscape which has seen a number of multi-nationals exit the market in recent years.

As part of its strategic review, the company announced plans in April 2024 to sell a 50 percent equity interest in PZ Wilmar Limited, its non-core edible oils business in Nigeria, to Wilmar International Limited (“Wilmar”), its joint venture partner, for a total consideration of $70 million. The firm said the transaction is expected to be completed shortly.

The reversal in exit plans follows an impressive earnings performance of PZ Cussons Nigeria Plc in the first-quarter of 2025 when it reported a sharp comeback in profit buoyed by foreign exchange gains that helped offset rising costs and extend a sales rebound.

The consumer goods maker, a subsidiary of the UK-listed PZ Cussons Group, reported a net profit of N13.49 billion for the three months ended Aug. 31, reversing a loss of N4.65 billion in the same period last year.

The company said it has provided enough guardrails against perceived volatility risk in Nigeria that could dampen future operations, one that’d be reviewed by the Board when the need arises. “These largely relate to foreign exchange management and to the generation and use of cash.”

As part of its commitment to deepen African operations, the Group said it will host a Capital Markets Event on 11 February 2026, on the day of its FY26 interim results.

“The event will provide more detail on the growth plans for the Africa business and the corresponding guardrails, as well as the Group’s strategy to build a portfolio of winning, locally loved brands, balanced between Developed and Emerging markets.”

Jonathan Myers, chief executive officer of PZ Cussons, said the firm had identified or agreed the sale of non-core or surplus assets totalling over £70 million since embarking on the strategic review, a move that has “significantly strengthened our balance sheet.”

“After a thorough review of the remainder of the Africa business and careful evaluation of the offers received, the Board believes it is in the best interest of our stakeholders to retain the business,” Myers said.

“Africa is a market of great opportunity. Given PZ Cussons’ deep heritage there, and given the strength of our brands and operational capabilities, we are well-placed to win over the longer term. Benefitting from a more stable economic environment in recent months and with positive fiscal reform, momentum in our Africa business is strong, with double-digit revenue growth in the first half of the financial year.

“We will now look to build on this strong performance and extend our category leadership, with nearly 80per cent of our revenue in Nigeria already coming from brands with #1 or #2 positions. With plans underpinned by appropriate guardrails—established to reduce risk and manage volatility – we are confident that we have a business that is set up for success.”