PZ Cussons, the multinational behind Imperial Leather and Carex, has placed its Kenyan business under formal review as part of a broader reassessment of its African operations.
The move casts uncertainty over the future of PZ Cussons East Africa, which manufactures and distributes personal and home care products across the region.
The London-listed group said the review covers its Family Care unit in Kenya, operations in Nigeria and Ghana, and its Electricals division in Nigeria. This follows a series of strategic pivots aimed at simplifying the group’s structure and refocusing on core brands.
“We are conducting a strategic review of our African businesses to assess how best to maximise shareholder value,” the company stated in its FY25 preliminary results.
“The strategic review of our wider Africa business is ongoing. This comprises our Family Care businesses in Nigeria, Ghana and Kenya, and our Electricals business in Nigeria. We remain committed to maximising long-term shareholder value and will provide an update as appropriate,” said Jonathan Myers, Chief Executive Officer.
Strategic Moves and Divestments
The review comes shortly after PZ Cussons sold its 50% stake in the PZ Wilmar edible oils joint venture, a divestment aimed at exiting non-core categories, reducing exposure to Nigeria, and strengthening its balance sheet.
The company also reversed plans to sell its struggling St. Tropez skincare brand, opting instead to restructure its U.S. business and rebuild revenue.
CEO Jonathan Myers said the company remains committed to long-term growth but must adapt to shifting market realities:
“We are taking decisive action to reset our portfolio and sharpen our focus on where we can win. Africa remains a key region, but we must ensure our structure supports sustainable returns.”
Africa Under Pressure Despite Kenyan Growth
For the year ending May 31, 2025, Africa revenues fell 7.1% to £234.7 million, due to a 38% depreciation in the Nigerian Naira. Adjusted operating profit dropped nearly 23% to £23.4 million (Sh4.1 billion), with margins contracting by 340 basis points.
Despite regional headwinds, the company noted that its Kenyan unit delivered “good, volume-led growth” driven by modern trade channels. However, it warned that these gains may not be sufficient to offset broader macroeconomic and currency pressures.
PZ Cussons Africa FY25 Performance
| Metric | FY24 | FY25 | Change |
|---|---|---|---|
| Revenue (£ million) | 252.7 | 234.7 | ↓ 7.1% |
| Operating Profit (£ million) | 30.3 | 23.4 | ↓ 22.7% |
| Operating Margin (%) | 12.0% | 8.6% | ↓ 340 bps |
“The macroeconomic environment in Nigeria remains extremely challenging,” the company noted, citing FX volatility and constrained consumer spending.
📲 Click here to connect with us on WhatsApp for real-time updates and investor insights.
