PZ Cussons: Carex maker has to pay up for Nigerian arm
Carex maker PZ Cussons said it was trading in line with expectations as growth at its Nigeria arm offset declines in its Indonesian market, according to a statement ahead of its AGM later today.
Nigeria is a key market for the Manchester-based soap and shower gel maker and earlier this year, the group made an offer to acquire the 26.7 per cent stake of its Nigerian subsidiary, PZ Cussons Nigeria, that it does not already own.
PZ Cussons Nigeria is traded on the Nigerian stock exchange and the parent company made an original offer to acquire the stake from minority shareholders at a price of 21 naira per share. The board of PZ Cussons Nigeria has since accepted a revised offer of 23 naira per share, which is equivalent to around £80m to £100m, PZ Cussons said today.
“Assuming current market conditions persist, the group aims to repatriate a further £30m to £50m of cash by the end of FY24,” the board of PZ Cussons said.
“Additional sensitivities and implications of the devaluation in the Naira, which will impact the H1 FY24 reported results, were set out in our trading statement on 27 June 2023.”
It added: “This reflects strong growth in Nigeria and ANZ offset by a decline in Indonesia. Our Europe and Americas business is stable overall, with significantly improving momentum in our UK washing and bathing brands offset by a decline in our Beauty business.”
It comes as earlier this year the firm reported a 10 per cent rise in annual revenues to £656m after it was bolstered by an acquisition of children’s brand Childs Farm.
Shares in the company were trading higher by two per cent this morning in London.