The business operating environment in Nigeria has remained challenging, particularly for the FMCG sector of the economy, due to issues of weak logistics, insecurity and other high operating costs caused by poor infrastructure. lower quality. PZ Cussons, a well-known brand of personal care, childcare and beauty products in Nigeria, once struggled to survive alongside other brands in this unfavorable business climate marked by competition. Despite these obstacles, the company quickly returned to profitability.
Analysts believe the progress was largely due to PZ Global’s announcement in 2019 that it would restructure its Nigerian business by streamlining operations and exiting non-core businesses and brands to improve overall profitability. For example, in September 2020, the company had to sell Nutricimaits Nigerian dairy business, and in the first half of 2020, it had to close its coolworld retail electrical stores, as well as a review of the product portfolio, route to market, organizational design and infrastructure.
About PZ Cussons
PZ Cussons is a UK-based global consumer goods company that promotes the well-being of individuals, families and communities. Under the name of Paterson Zochonis (PZ), the company was established in 1884 as a commodity trading company in the Colony and Protectorate of Sierra Leone by George Zochonis and George Paterson. Before the end of the 19th century, it extended its operations to Nigeria.
The company is currently headquartered in Manchester, UK, and operates in Europe, North America, Asia-Pacific and Africa, employing approximately 3,000 people worldwide. The company is considered multi-local, not just multinational, with its four main markets accounting for the majority of the company’s revenue and considered its priority. The company is also listed on the FTSE 250 Index and listed on the London Stock Exchange. PZ Cussons Nigeria Plc is the listed subsidiary of PZ Cussons Holdings, which owns the majority of the company.
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Interestingly, Nigeria is the largest and most diverse single market for PZ Cussons, operating in personal care, home care, food and power. PZ has a joint venture with PZ Wilmar (food and nutrition) and its subsidiary is HPZ (electrical products).
Overall, its product portfolio is divided into two parts: must win brands and Portfolio brands. must win Brands are the company’s primary investment target. Some of its products are: Cussons Baby oil, Joy soap, Morning Fresh, Premier anti-bacterial bar. Overall, its products fall into the following categories:
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Hygiene Brands: Joy Soap, Carex Hand Soap, Imperial Leather, Morning Fresh Dish Soap, Canoe Detergent, Robb Ointment.
Baby brands: Child’s Farm baby moisturizer, Cussons Kids, Cusson’s Baby oil etc.
Beauty: Saint-Tropez, Sanctuary Spa, Venus, Chalres Worthington Fudge Urban
Other brands: Vegetable oil from Mamador, Devon Kings
Electric: Haier Thermocool
Some of PZ’s competitors are Unilever, Dufil Prima and Grand cereals. This is based on some select products in each of PZ’s categories.
For example, Unilever’s Omo and Vaseline brands compete with PZ’s line of detergents and babies, such as Canoe detergents and the Cussons range of babies. However, Unilever’s brands are perceived to be more popular but slightly more expensive than PZ’s.
In addition, PZ’s range of cooking oils (Mamador and Devon Kings) competes with Dufil Prima’s Power Oil and Grand Cereals Grand Pure Soybean Oil.
Board of directors and management
- Panagiotis Katsis– Chairman and CEO, MD and director: a Greek national, he holds an MBA from the University of Warwick and a degree from INSEAD and the University of Salford. He worked at PZ from 2002 until June 2020 when he became Regional General Manager. He is experienced in managing complex businesses in demanding geographies with over 15 years of professional experience acquired in West Africa, China and Europe.
- Zuber Momoniat– CFO and Executive Director: Zuber is an experienced CFO with a demonstrated history of working in the consumer goods industry. He studied accounting at the University of the Witwatersrand in South Africa and is a strong finance professional skilled in budgeting, internal controls, report writing, technical accounting research and financial accounting.
- Gbenga A. Oyebode – Non-Executive Chairman
- Joyce Folake Coker – Executive Director and Director of Human Resources
- Elizabeth Ngozi Ebi – Independent non-executive director
- Ifueko Marina Omoigui-Okauru – Independent Non-Executive Director
- Paul Usoro – Non-Executive Director
- Jacqueline Ezeokwelume- Secretary & Legal Advisor
- Jitesh Himatlal Sodha – Non-Executive Director
- Evans Eghosa Enabuele – Manager – Financial Reporting and Accounting
According to the company, its business model is based on innovation, responsible sourcing and manufacturing, creative advertising and marketing, and strong customer partnerships and channels. The company makes a profit through sales and distribution.
The company’s 2021 annual report says that globally its revenue was £603.3 million, while pre-tax profit is £63.2 million.
As a listed company on the Nigerian Stock Exchange (NGX) under the symbol “PZ”, its market capitalization is NGN 32.6 billion and its current share price is NGN 8.20.
- Despite the high rate of inflation the country has been experiencing, Q1 to Q4 2022 results show the company recorded a profit of N6.40 billion, reflecting an increase of 277.45% over the corresponding period. of 2021.
- Its share price was NGN 6.10 at the start of the year and has since gained 34.4% on that valuation.
- The company’s sustainability report says its palm oil policy initiative to ensure the oil (used in its personal care products) is responsibly sourced to protect the environment, has gave positive results. The report states:Today, 100% of our palm oil and palm kernel oil suppliers and 99.6% of our palm oil derivatives suppliers have NDPE commitments to ours. Additionally, 99.5% of our palm oil and 97.9% of our palm oil derivatives are fully traceable back to the factory.”.
In 2019, the company had to debunk a rumor that surfaced on social media that it had exited the Nigerian market. This came after PZ Cussons revealed that its financial performance for 2019 was poor due to weak demand and a number of other combined economic challenges in the country. However, with the positive result that Q1-Q4 2022 indicates, it is hoped that the brand will continue to deliver on its brand promise and exceed consumer expectations.