PZ Cussons sells stake in Nigeria joint-venture; narrows profit view

(Alliance News) - PZ Cussons PLC on Wednesday said it has sold its stake in a Nigerian joint venture, and the Carex brand-owner trimmed the top end of its annual profit outlook.

Manchester-based PZ Cussons, which also owns Imperial Leather and St Tropez, said it has sold its 50% stake in Nigerian edible oils firm PZ WIlmar for USD70 million. The stake has been sold to joint-venture partner Wilmar International Ltd.

PZ Wilmar sells edible oils under the brand names Mamador and Devon King's. The joint-venture, formed in 2010, is "one of the largest sustainable palm oil businesses in Nigeria", PZ Cussons said.

It contributed GBP4.7 million to group adjusted operating profit in the half-year to November 30.

"The transaction will represent a profit on disposal as well as a reduction in complexity for the group and less exposure to the risk and volatility of Nigeria," PZ Cussons said.

PZ Cussons expects to report group like-for-like revenue growth of 8% for the full-year. Reported revenue of around GBP505 million is expected, down from GBP527.9 million the year prior.

"Performance in the second half of the year was driven by continued strong revenue growth in Africa given the inflationary macro-economic environment in Nigeria. APAC has returned to growth in H2, driven by strong revenue growth in Indonesia, and whilst ANZ revenue declined in a soft market, it continued to see market share gains. Europe and Americas revenue was flat in FY25, with good growth in the UK and Europe offsetting a double-digit decline in the St Tropez US business," it said.

PZ Cussons now expects annual adjusted operating profit between GBP52 million and GBP55 million, the top end of the range lowered from GBP58 million. It noted an addition GBP2 million of costs booked under the extended producer responsibility rule in its UK business. ERP rules mean firms must pay fees for packaging they supply to or import into the UK.

The firm also reported a "significant impact on group profitability as a result of the softer St Tropez US performance".

PZ Cussons shares were 1.9% higher at 80 pence each in London on Wednesday morning.

By Eric Cunha, Alliance News news editor

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