PZ Cussons (LSE:PZC), the maker of Imperial Leather and Carex soaps, has agreed to sell its half of a Nigerian edible oils joint venture as it continues to review strategic options for its African businesses.
The London-listed group said it has struck a deal to sell its 50% stake in PZ Wilmar to partner Wilmar International for $70 million (£51 million), with expected net proceeds of roughly $64 million (£47 million).
PZC, which announced plans for a broader portfolio transformation strategy in April last year, received a £4.7 million contribution from the JV to group adjusted operating profit and cash flow of £2.5 million in the first half of its financial year to end-May 2025.
Chief executive Jonathan Myers 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."
He also provided an update on trading across the group, saying like-for-like revenue growth of 8% for the just completed year, with reported revenue of around £505 million.
Performance was supported by strong growth in Africa and Indonesia, while revenue was flat in Europe and the Americas, as growth in the UK and Europe offset a decline in the US St Tropez business.
Adjusted operating profit guidance has been narrowed to £52-55 million, from £52-58 million before, with gross debt said to stand at £158 million at year-end, falling to £111 million on a pro forma basis when including proceeds from the Wilmar sale.