PZ Cussons (LSE:PZC) will retain its Africa business after a strategic review by the board determined that offers received did not reflect the business’s underlying value.
The soap and shampoo maker said it is now targeting long-term growth in its African markets, particularly Nigeria, Kenya and Ghana.
Its strategy includes core brand-building, entry into new categories such as men's grooming and beauty, and regional expansion supported by its existing operations.
Chief executive Jonathan Myers said: "Since embarking on the strategic review of Africa, we have identified or agreed the sale of non-core or surplus assets totalling over £70 million.
"This, combined with continued cash generation of the group, has significantly strengthened our balance sheet."
He added: "Africa is a market of great opportunity. Given PZ Cussons' deep heritage there, and given the strength of our brands and operational capabilities, we are well-placed to win over the longer term.
"Benefitting from a more stable economic environment in recent months and with positive fiscal reform, momentum in our Africa business is strong, with double-digit revenue growth in the first half of the financial year."
After agreeing the sale of the group’s 50% stake in edible oils venture PZ Wilmar for $70 million, there are now plans to divest around £7 million of further non-core African assets this financial year.
To manage volatility, particularly in Nigeria, the group has implemented financial and operational guardrails around foreign exchange and cash management, with oversight by the board.