PZ Cussons (LSE:PZC) has put its St Tropez tanning brand up for sale and is evaluating its options in Nigeria after another tough quarter for the soaps and personal products group.
A strategic review concluded that in addition to the challenges of its significant exposure to Nigeria, "the group is too complex for its size, with financial and human resources spread too thinly to generate consistent returns".
Proceeds from any sale will be used to invest in the business and reduce gross debt, it added.
Chief executive Jonathan Myers said: “The macro-economic challenges and complexities associated with operating in Nigeria are significant and there is much more to do to unlock the full potential of the business.
“As such, we have undertaken a strategic review of our brands and geographies and have embarked on plans to transform our portfolio, refocusing on where the business can be most competitive.
“The actions we are taking will crystallise value for our investors from assets better suited to alternative ownership structures.”
Cussons said business had stabilised in the latest quarter and it was on track to meet its recently revised targets.
The Imperial Leather owner added it was still battling the slump in the value of Nigeria’s Naira and high inflation there, but volumes had picked up in Africa despite the price rises.
Sales overall rose by 6.4%% like-for-like to £126.7 million in the third quarter to end-March 2024 but were down by 23.7% on an actual basis due to the devaluation of Nigeria’s currency.
Excluding Africa, sales were down 6.6% to £91.1 million, with Europe and the Americas largely flat and Asia Pacific reduced by almost 6%.
For the full year, Cussons expects to deliver adjusted operating profit in the region of £55-60 million in line with earlier guidance.
Shares rose 5% on the announcement.