PZ Cussons Plc, the parent company of PZ Cussons Nigeria, has announced plans to divest its African subsidiaries, primarily due to the significant depreciation of the Nigerian Naira.
This was highlighted in the company's financial report for the year ending May 31, 2024, which revealed that the Naira's value had plummeted by 70%, severely impacting the company's financial performance.
In a statement, Jonathan Myers, Chief Executive Officer of PZ Cussons, noted that Nigerians are grappling with unprecedented inflation and economic challenges.
He emphasized that the depreciation of the Naira has led to considerable foreign exchange losses for the company, amounting to £107.5 million. This loss was attributed to the translation and settlement of U.S. dollar-denominated liabilities within its Nigerian operations.
The company is contemplating both partial and full sales of its African business as a strategy to mitigate exposure to currency fluctuations. The board has reportedly received multiple expressions of interest regarding this divestment.
Myers further commented on the situation, stating that while the company has worked diligently to manage these challenges, it remains committed to serving Nigerian consumers amidst ongoing economic difficulties.
He affirmed that any proceeds from potential sales would be directed towards reducing gross borrowings and lowering net interest costs.
