PZ Cussons Plc, the parent company of PZ Cussons Nigeria, has revealed plans to sell either part or all of its African subsidiaries due to naira fluctuations.
The announcement was made in the company's financial results for the year ending May 31, 2024, published on Wednesday. PZ Cussons cited the move as a strategy to reduce its exposure to the volatility of the naira, a factor that has impacted its operations across the continent.
The consumer goods manufacturer said the board has received multiple interests in the sale of its African business.
“The Group is currently engaged in a process to sell its St Tropez brand and is exploring potential transactions that could lead to a partial or full sale of its Africa business, having received a number of expressions of interest,” PZ Cussons said.
“A partial or full sale of the Group’s Africa business could materially reduce the Group’s exposure to fluctuations in the Naira exchange rate.
“The Board has committed to using any proceeds from these transactions to first reduce gross borrowings, and consequently the level of the Group’s net interest cost.”