Following reports that PZ Cussons is exiting the Nigerian market due to unfavorable conditions, the leading conglomerate has released a statement refuting such claims.
In a statement made by the Chief Executive Officer, PZ Cussons Nigeria Plc, Christos Giannopoulos on Thursday, 31st January 2019, he clarified that the report is false. He further stated that though the company was faced with trading issues in Nigeria, it would continue to maintain its strong market shares in the key products category in Nigeria until growth returns to the market.
On Tuesday, 29th January 2019, the London Stock Exchange published PZ’s half-year report for the second half of 2018. Although the content of this report did not state that PZ Cussons was leaving the Nigerian market, the report led to some assumptions
In the report, PZ Cussons made comments about its state of affairs in the Nigerian market, most of which were not positive. It also made a remark about how low consumer disposable income was affecting trade which in turn had an effect on their growth.
The report also indicated that the weakening Naira and exchange rate regime also affected businesses in Nigeria. The macroeconomic conditions in Nigeria which remain a major challenge also contributed to the negative impact on the group’s growth.
Chairman of PZ group, Caroline Silver said the group would streamline its activities and limit its exposure to volatility in Nigeria. However, it would not be exiting the Nigerian market but rather focus on the areas in which it is doing well.
PZ Cussons is a dynamic consumer products group and innovator. Nigeria is its largest and most diverse single market, operating in personal care, food and nutrition and electricals. It has been present in the Nigerian market for over 100 years now.