PZ Cussons, the multinational shopper items firm, has introduced plans to promote its African subsidiaries, together with its Nigerian operations, as a part of efforts to mitigate the affect of the continued overseas trade disaster.
The corporate’s determination follows the numerous devaluation of the naira by 70%, which has closely affected its monetary efficiency.
In its preliminary outcomes for the fiscal yr ending Might 31, 2024, PZ Cussons confirmed receiving a number of expressions of curiosity from potential consumers for its African enterprise. The corporate is contemplating each partial and full gross sales to cut back its publicity to the naira’s volatility.
“Over the past 12 months, we’ve got made continued operational progress and delivered in opposition to the strategic priorities set out at the beginning of the yr, in opposition to the backdrop of macro-economic challenges,” PZ Cussons stated in its preliminary outcomes printed on its web site for the yr ended Might 31, 2024.
“On the identical time, we’ve got taken the essential first steps to rework our enterprise and maximise shareholder worth, by refocusing our portfolio on the place we may be best.
“The interval was marked by a 70 per cent devaluation of the Nigerian naira, which has had vital implications on our reported financials. We’ve labored onerous to mitigate the affect of this on the group, whereas persevering with to serve Nigerian shoppers who’re dealing with unprecedented inflation and financial difficulties.”
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PZ Cussons famous the challenges posed by macroeconomic circumstances in Nigeria however confused its dedication to serving Nigerian shoppers, regardless of the financial difficulties and inflation. The corporate’s UK Private Care division, nonetheless, reported a notable enchancment with double-digit income progress.
Concerning its Nigerian operations, PZ Cussons recorded a overseas trade lack of £107.5 million, primarily because of the devaluation of the naira. The corporate’s Nigerian subsidiary, PZ Cussons Nigeria Plc, posted a major lack of N94.78 billion in Q3 2023/24, in distinction to a revenue of N11.2 billion in the identical interval in 2022. The subsidiary additionally stays in a detrimental web asset place, with liabilities exceeding property by N46.4 billion.
In a separate improvement earlier this yr, the Securities and Change Fee (SEC) rejected PZ Cussons’ bid to accumulate minority shares in its Nigerian subsidiary and delist from the Nigerian Change. The corporate had sought to purchase out the remaining 26.73% minority stake however was denied approval by the SEC.
PZ Cussons is now shifting ahead with its closed interval, which started on September 1, 2024, and can proceed till after the discharge of its unaudited monetary statements for the primary quarter ending August 31, 2024.
