THE WHAT? PZ Cussons has agreed to sell its 50% equity stake in Nigerian joint venture PZ Wilmar to Wilmar International for US$70 million, with the transaction expected to complete in the final quarter of 2025, subject to regulatory approvals. Net proceeds after taxes and fees are expected to be approximately US$64 million. The joint venture, formed in 2010, contributed £4.7 million to the Group’s adjusted operating profit in the first half of FY25. The divestment follows a portfolio review announced in 2024 and forms part of the company’s broader restructuring.
THE DETAILS In its FY25 trading update, PZ Cussons reported like-for-like revenue growth of 8%, with total revenue expected to reach approximately £505 million. Growth in Africa and Indonesia was offset by a decline in Australia and New Zealand and flat performance in Europe and the Americas. The company reported a double-digit revenue decline for the St. Tropez brand in the US. As a result, PZ Cussons narrowed its adjusted operating profit guidance to between £52 million and £55 million, down from a previously forecast range of £52 million to £58 million. The revision reflects both the weak performance of the US business and an additional £2 million in Extended Producer Responsibility costs in the UK. Gross debt at year-end is expected to be £158 million, or £111 million on a pro-forma basis including the proceeds from the Wilmar sale.
THE WHY? The disposal of PZ Wilmar reduces the company’s exposure to Nigeria and simplifies its business structure. The lowered profit guidance reflects regulatory costs and softer trading in the US beauty market. Full-year results will be released in September 2025.
Source: London Stock Exchange
