Manchester consumer products company PZ Cussons plc said that after a Strategic Review it has decided to retain its Africa business and said it has set out ambitious growth plans for the business as part of a wider group strategy built upon a portfolio balanced between developed and emerging markets.

“Furthermore, the group has identified several guardrails in order to achieve this growth with reduced risk and volatility …” said the maker of Carex and Imperial Leather soap. 

“The group received significant levels of interest from a number of parties regarding the wider Africa portfolio. The board has, however, concluded that the offers received did not reflect the inherent value of the business and that the greatest value for shareholders will be created by retaining the business and building a group portfolio balanced between its developed markets of UK and ANZ and its emerging markets of Indonesia and Nigeria …”

PZ Cussons CEO Jonathan Myers said: “Since embarking on the strategic review of Africa, we have identified or agreed the sale of non-core or surplus assets totalling over £70 million.

“This, combined with continued cash generation of the Group, 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.

“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 80% 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.

“We expect Africa to be a significant contributor to overall Group revenue growth as we seek to build a winning portfolio of locally-loved brands, balanced between Developed and Emerging markets.”