PZ Cussons Sells Stake in Nigerian JV , Lowers FY25 Revenue Steering

THE WHAT?  PZ Cussons has agreed to promote its 50% fairness stake in Nigerian three way partnership PZ Wilmar to Wilmar Worldwide for US$70 million, with the transaction anticipated to finish within the ultimate quarter of 2025, topic to regulatory approvals. Internet proceeds after taxes and charges are anticipated to be roughly US$64 million. The three way partnership, fashioned in 2010, contributed £4.7 million to the Group’s adjusted working revenue within the first half of FY25. The divestment follows a portfolio overview introduced in 2024 and kinds a part of the corporate’s broader restructuring.

THE DETAILS In its FY25 buying and selling replace, PZ Cussons reported like-for-like income progress of 8%, with whole income anticipated to succeed in roughly £505 million. Progress in Africa and Indonesia was offset by a decline in Australia and New Zealand and flat efficiency in Europe and the Americas. The corporate reported a double-digit income decline for the St. Tropez model within the US. Because of this, PZ Cussons narrowed its adjusted working revenue steerage to between £52 million and £55 million, down from a beforehand forecast vary of £52 million to £58 million. The revision displays each the weak efficiency of the US enterprise and a further £2 million in Prolonged Producer Accountability prices within the UK. Gross debt at year-end is anticipated to be £158 million, or £111 million on a pro-forma foundation together with the proceeds from the Wilmar sale.

THE WHY? The disposal of PZ Wilmar reduces the corporate’s publicity to Nigeria and simplifies its enterprise construction. The lowered revenue steerage displays regulatory prices and softer buying and selling within the US magnificence market. Full-year outcomes will probably be launched in September 2025.

Supply: London Inventory Alternate