Well PZ Cussons is the latest company to bemoan Nigeria’s poor road network and harsh business environment. In a report by TheCable, PZ Cussons has decided to cut their exposure to Nigerian business environment.
According to theCable, PZ Cussons is not leaving Nigeria, as widely reported in the country — it is, however, limiting its business exposure in Nigeria, as a result of harsh business conditions in Africa’s largest economy.
TheCable reviewed PZ’s position as listed on the London Stock Exchange, and the impact of its Nigerian business on its corporate balance sheet across Europe, Asia, and Africa.
We found that the Nigerian market is currently being viewed as a drag on the company’s global positions as reflected in its half-year report published on the London exchange on Tuesday.
Caroline Silver, non-executive chair at PZ, said “the Group continues to make pleasing progress in Europe and Asia, with new product development and increased support across our key brands delivering positive momentum”.
“Disappointingly, however, the macroeconomic conditions in Nigeria remain extremely challenging and continue to have a significant negative impact on overall Group performance. Reflecting this, we now expect Group adjusted profit before tax for the year to be towards £70 million.”
PZ NOT LEAVING NIGERIA
Silver went on to explain that it was not leaving Nigeria, but just streamlining its business, and limiting exposure in Nigeria.
“Whilst these conditions prevail, we will maintain our strong market shares in key product categories in Nigeria until growth returns to the market,” Silver said
“In Personal Care and Beauty across Europe and Asia, identified as sources of growth for the Group, we will continue to prioritise higher investment levels behind carefully targeted key brand and market opportunities.
“Furthermore, the Board has approved specific strategic initiatives which will streamline our portfolio of activities and limit exposure to volatility in Nigeria, with more information to be provided in due course.”