PZ Cussons, the owner of brands such as Imperial Leather and Carex, has reduced its exposure to the volatile market in Nigeria with the sale of its oils business.
The Manchester-based firm has sold a 50% equity stake in PZ Wilmar for £51m to its joint venture partner in the country. The proceeds will be used to reduce debt.
The move follows last year’s strategic review of PZ Cussons’ brands and geographies, including evaluating options for its African business and exploring the sale of tanning brand St. Tropez.
Jonathan Myers, Chief Executive Officer, said: “We are exiting a non-core category, reducing the risk associated with our presence in Nigeria, and materially strengthening our balance sheet.”
The announcement was made alongside the release of a trading update for the year ended 31 May 2025. PZ Cussons said it expects to report like-for-like revenue growth of 8% and total turnover of £505m.
The group noted that its performance in the second half was driven by continued strong revenue growth in Africa, resulting from the inflationary environment in Nigeria.
Sales in Europe and the Americas were flat in the year, with “good growth” in the UK and Europe offsetting a double-digit decline in the St. Tropez US business.
Group adjusted operating profits are forecast to be in the range of £52m to £55m, a narrowing from £52m to £58m stated previously. PZ Cussons blamed an additional £2m of extended producer responsibility (EPR) costs in its UK business and a softer St Tropez performance in the US for the shortfall.
“Having delivered a solid FY25 performance, our focus now is to continue transforming PZ Cussons into a business with stronger brands in a more focused portfolio, delivering sustainable profitable growth,” concluded Myers.
