REG - PZ CUSSONS PLC - Sale of Joint Venture and Trading Update

PZ CussonsAnnouncement

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RNS Number : 2715N  PZ CUSSONS PLC  18 June 2025

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation. Upon the publication of this announcement via a
Regulatory Information Service, this inside information is now considered to
be in the public domain.

 

18 June 2025

Sale of non-core Nigerian Joint Venture and update on FY25 performance

 

PZ Cussons plc ("PZ Cussons" or "the Group") today announces the sale of its
50% equity stake in PZ Wilmar, and provides an update on trading in respect of
the FY25 financial year ended 31 May 2025.

 

Sale of 50% stake in PZ Wilmar Joint Venture

 

In April 2024 the Group announced plans to maximise shareholder value through
a portfolio transformation, following a strategic review of brands and
geographies. This included the evaluation of strategic options for its African
business.

 

As a significant step in the portfolio transformation, the Group is pleased to
announce it has signed an agreement to sell its 50% equity interest in PZ
Wilmar Limited, a Nigerian edible oils business, to Wilmar International
Limited ("Wilmar"), the Joint Venture partner, for cash consideration of $70
million (£51 million 1 ). Consideration will be paid in US Dollars.

 

After taxes, fees and other costs, net proceeds are expected to be
approximately $64 million (£47 million). Proceeds will be used to reduce
gross debt and, as a result, the Group's key credit and bank covenant metrics
are materially improved. Completion, which remains conditional on relevant
approvals, is expected to take place in the last quarter of calendar 2025.

 

Formed in 2010 through a joint venture of PZ Cussons and Wilmar, PZ Wilmar is
one of the largest sustainable palm oil businesses in Nigeria. Its edible
cooking oils, sold under the brand names Mamador and Devon King's, hold market
leading positions. Operations of the business are not expected to be impacted
by the transaction.

 

The PZ Wilmar joint venture contributed £4.7 million to Group adjusted
operating profit in H1 25 and cash flow of £2.5 million, which reflected the
partial repayment of a shareholder loan 2 . The transaction will represent a
profit on disposal as well as a reduction in complexity for the Group and less
exposure to the risk and volatility of Nigeria.

 

FY25 performance update

 

The Group expects to report like for like revenue growth of 8% for FY25, with
reported revenue of c.£505 million. Performance in the second half of the
year was driven by continued strong revenue growth in Africa given the
inflationary macro-economic environment in Nigeria. APAC has returned to
growth in H2, driven by strong revenue growth in Indonesia, and whilst ANZ
revenue declined in a soft market, it continued to see market share gains.
Europe and Americas revenue was flat in FY25, with good growth in the UK and
Europe offsetting a double-digit decline in the St. Tropez US business.

 

The Group's guidance for FY25 adjusted Operating Profit is now £52 million to
£55 million. This is a narrowing of the £52 million to £58 million range
stated previously and reflects the recognition in Q4 of an additional £2
million Extended Producer Responsibility costs in our UK business, and the
significant impact on Group profitability as a result of the softer St. Tropez
US performance. These factors were partly offset by cost management
initiatives across the Group.

Gross debt as at the end of FY25 is expected to be £158 million, down from
£167 million as at the end of FY24. On a pro-forma basis, including the
proceeds from the sale of the 50% stake in Wilmar, gross debt would be £111
million.

 

Jonathan Myers, Chief Executive Officer, said:

"I am delighted to announce the sale of our stake in PZ Wilmar to our joint
venture partner. In doing so, we are exiting a non-core category, reducing the
risk associated with our presence in Nigeria, and materially strengthening our
balance sheet. At the same time, the smooth transition of ownership offers
continuity for colleagues and operations. I want to thank all our PZ Wilmar
colleagues for the significant achievements since the inception of the JV in
2010, including the delivery of significant profit growth over this time. We
wish the team continued success.

"Having delivered a solid FY25 performance, our focus now is to continue
transforming PZ Cussons into a business with stronger brands in a more focused
portfolio, delivering sustainable profitable growth."

The Group will report FY25 results in September 2025.

Standard Bank, Latham & Watkins LLP and Udo Udoma & Belo-Osagie are
advising PZ Cussons plc on the PZ Wilmar transaction.

 

Contact details

 

Investors

Simon Whittington - IR and Corporate Development Director

+44 (0) 77 1137 2928

Media

Headland PZCussons@headlandconsultancy.com
(mailto:PZCussons@headlandconsultancy.com)

+44 (0) 20 3805 4822

Susanna Voyle, Stephen Malthouse, Charlie Twigg

 

About PZ Cussons

 

PZ Cussons is a listed consumer goods business headquartered in Manchester,
UK. We employ just under 2,500 people across our operations in Europe, North
America, Asia-Pacific and Africa. Since our founding in 1884, we have been
creating products to delight, care for and nourish consumers. Across our core
categories of Hygiene, Baby and Beauty, our trusted and well-loved brands
include Carex, Childs Farm, Cussons Baby, Imperial Leather, Morning Fresh,
Original Source, Premier, Sanctuary Spa and St. Tropez. Sustainability and the
wellbeing of our employees and communities everywhere are at the heart of our
business model and strategy, and captured by our purpose: For everyone, for
life, for good.

 

 1  Based upon a USD/GBP exchange rate of 1.36

 2  Average annual contribution to adjusted operating profit over FY22-24 was
£8.3 million

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