Fx crisis: PZ Cussons to sell Nigeria subsidiaries, others

Multinational consumer goods company, PZ Cussons, says it has commenced plans to sell its African subsidiaries to any interested buyer.

The parent company of PZ Cussons Nigeria said it is looking at a partial or full sale to mitigate the company’s exposure to fluctuations in the naira, which has devalued by 70 per cent.

The company stated this in its preliminary results published on its website for the year ended May 31, 2024.

According to the consumer goods manufacturer, the board has also received multiple interests regarding the sale of its African business.

The document read, “Over the last 12 months, we have made continued operational progress and delivered against the strategic priorities set out at the start of the year, against the backdrop of macro-economic challenges.

“At the same time, we have taken the important first steps to transform our business and maximise shareholder value, by refocusing our portfolio on where we can be most competitive.

“The period was marked by a 70 per cent devaluation of the Nigerian naira, which has had significant implications on our reported financials. We have worked hard to mitigate the impact of this on the group, while continuing to serve Nigerian consumers who are facing unprecedented inflation and economic difficulties.”

“Against this backdrop, we remain confident in the long-term potential for PZ Cussons as a business with stronger brands in a more focused portfolio, delivering sustainable, profitable growth,” PZ Cussons said.

Commenting on the impact of the naira devaluation, PZ Cussons said a foreign exchange loss of £107.5m “primarily arose from the translation and settlement of USD denominated liabilities in our Nigerian subsidiaries and is wholly the result of the devaluation of the naira, which fell by 70 per cent from May 31, 2023 to May 31, 2024”.

In April, the Chief Executive Officer, PZ Cussons, Jonathan Myers, said the company was reviewing its brands and geographies over macroeconomic challenges and complexities in Nigeria.

He spoke a month after the Securities and Exchange Commission rejected PZ Cussons’ request to acquire the shares of minority shareholders in PZ Cussons Nigeria Limited, its Nigerian subsidiary

In September 2023, PZ Cussons had shown interest in buying the remaining 26.73 per cent minority shares in its Nigerian subsidiary, at a price of N21 per unit.

As of May 31, PZ Cussons holds a 73.27 per cent stake in the Nigerian subsidiary, which represents 2.90bn shares, worth N45.53bn as of September 18.

The Nigerian subsidiary of the company, PZ Cussons Nigeria Plc has continued to struggle, as it posted a N94.78bn loss in the third quarter of 2023/24 compared to the N11.213bn gain it had in the corresponding period in 2022.

The firm suffered a N74.14bn loss in Q2. PZ Cusson remained in a negative net asset position, as liabilities surpassed assets by N46.420bn on the back of naira depreciation.

Earlier this year, the Securities and Exchange Commission rejected the ‘No Objection’ sought by the multinational to buy out minority shareholders at N23 and delist from the Nigerian exchange.

In another notice posted on the Nigerian exchange website, the company stated,  “Please note that the company’s closed period, which commenced on September 1, 2024, will remain in effect until 24 hours after the release of the Unaudited Financial Statements for the first quarter ended 31 August 2024, to the market.”

The Senior Special Assistant on digital and New media to President Bola Ahmed Tinubu, O’tega Ogra has penned an open letter to controversial TV presenter, Rufai Oseni on his remark on remark about the rumour exit of some international brands from the Nigerian economy. Here is the statement…

ON THE COCA COLA $1BILLION PLEDGE OVER THE NEXT FIVE YEARS

Dear Rufai,

I vividly remember conducting extensive research on the foods and beverages industry just before exiting the private sector last year. It came to my attention then that the pledge was retracted, with many attributing it to the imposition of excise taxes on the company shortly thereafter as well as the impact of Post-COVID downturn locally and globally. Nevertheless, it is undeniable that they have poured more than 1.5 billion USD into Nigeria over the last decade.

Listening to the company global President today, he basically said they were returning this investment to Nigeria as a result of the Tinubu-Shettima administration’s Economic Growth & Recovery Plan (EGRP) and the potential of the government’s fiscal reforms.
My principal & our President, President Bola Tinubu, reiterated this resolve today when he said, “We are business-friendly, and as I said at my inauguration, we must create an environment of easy-in and easy-out for businesses. We are building a financial system where you can invest, re-invest, and repatriate all your dividends. I have a firm belief in that.”

Nigeria is more than open to business, and the world is taking positive note of it already!

P.S: In the Oil & Gas sector, Total, who was claimed to be heading out, are now partnering with NNPCL on a new $550million non-associated gas investment – the Ubeta Field Development Gas Project for which the Final Investment Decision was signed at the end of June (see below for more on it)

https://x.com/otegaogra/status/1836891511062958508?s=46&t=-WT1A6V3jj52Bil8fk9JSg

https://x.com/otegaogra/status/1836891511062958508?s=46&t=-WT1A6V3jj52Bil8fk9JSg

GTCO’s Guaranty Trust Bank Named Best Bank for Corporate Social Responsibility in Nigeria by Euromoney

Sahara Weekly Reports That Guaranty Trust Bank Ltd (“GTBank,” or “the Bank”), the flagship subsidiary of Guaranty Trust Holding Company Plc (GTCO), one of the largest financial services institutions in Africa, has been named Best Bank in Corporate Social Responsibility in Nigeria at the prestigious Euromoney Awards for Excellence 2024.

This recognition underscores GTCO’s unwavering commitment to excellence, going beyond offering innovative financial services and creating more value for its stakeholders to enriching lives and constantly exploring new opportunities to drive positive change in society.

Announcing the Award, Euromoney highlighted the range and impact of GTCO’s CSR initiatives spanning education, health, community development, and financial inclusion. Over the years, Guaranty Trust has not only led with innovation and service excellence but also consistently demonstrated steadfast dedication to making a positive impact and creating shared value through CSR. Central to these efforts are its consumer-focused events—the GTCO Food and Drink Festival and the GTCO Fashion Weekend—both of which offer free business platforms for budding as well as established entrepreneurs to showcase their talents, share their unique stories, and connect with a broader audience. The Annual GTCO Autism Programme, an offshoot of the Orange Ribbon Initiative, aims to provide ongoing support for persons with developmental disabilities, focusing on those with autism spectrum disorder (ASD).

Commenting on the Award, Segun Agbaje, Group CEO of Guaranty Trust Holding Company Plc, stated: “As a Proudly African institution, we recognize that our success is inextricably linked to the well-being of the society in which we operate. Our commitment to corporate social responsibility is deeply rooted in our belief that businesses must act as a force for good, driving sustainable progress, and fostering inclusive growth. Over the years, we have successfully developed several free-business platforms and continue to sponsor impactful social causes that have benefited millions of people and businesses across Africa. This recognition from Euromoney is a testament to the far-reaching impact of our initiatives, and it reinforces our resolve to create enduring value and ensure better outcomes for all.”

About GTCO

Guaranty Trust Holding Company Plc is the ultimate holding company of the GTCO Plc Group, one of the largest financial services institutions in Africa. Headquartered in Lagos, Nigeria, Guaranty Trust Holding Company Plc maintains direct and indirect investments in a network of operating entities located in 10 countries across Africa and the United Kingdom. Within these regions, the operating entities provide a comprehensive range of commercial banking and related financial services to millions of retail, institutional, private banking, and wealth management customers, in addition to asset management, pension fund administration, and payment technology businesses.

GTCO’s leadership in the banking industry and efforts at empowering people and communities have earned it many prestigious awards over the years. Guaranty Trust Bank is a Twelve-time winner of Euromoney’s Best Bank in Nigeria award and was recently named Nigeria’s Strongest Brand and Best Banking Brand in Nigeria by Brand Finance and Global Brands Magazine, respectively.GTCO’s Guaranty Trust Bank Named Best Bank for Corporate Social Responsibility in Nigeria by Euromoney

[Lagos, Nigeria – September 19, 2024] – Guaranty Trust Bank Ltd (“GTBank,” or “the Bank”), the flagship subsidiary of Guaranty Trust Holding Company Plc (GTCO), one of the largest financial services institutions in Africa, has been named Best Bank in Corporate Social Responsibility in Nigeria at the prestigious Euromoney Awards for Excellence 2024.

This recognition underscores GTCO’s unwavering commitment to excellence, going beyond offering innovative financial services and creating more value for its stakeholders to enriching lives and constantly exploring new opportunities to drive positive change in society.

Announcing the Award, Euromoney highlighted the range and impact of GTCO’s CSR initiatives spanning education, health, community development, and financial inclusion. Over the years, Guaranty Trust has not only led with innovation and service excellence but also consistently demonstrated steadfast dedication to making a positive impact and creating shared value through CSR. Central to these efforts are its consumer-focused events—the GTCO Food and Drink Festival and the GTCO Fashion Weekend—both of which offer free business platforms for budding as well as established entrepreneurs to showcase their talents, share their unique stories, and connect with a broader audience. The Annual GTCO Autism Programme, an offshoot of the Orange Ribbon Initiative, aims to provide ongoing support for persons with developmental disabilities, focusing on those with autism spectrum disorder (ASD).

Commenting on the Award, Segun Agbaje, Group CEO of Guaranty Trust Holding Company Plc, stated: “As a Proudly African institution, we recognize that our success is inextricably linked to the well-being of the society in which we operate. Our commitment to corporate social responsibility is deeply rooted in our belief that businesses must act as a force for good, driving sustainable progress, and fostering inclusive growth. Over the years, we have successfully developed several free-business platforms and continue to sponsor impactful social causes that have benefited millions of people and businesses across Africa. This recognition from Euromoney is a testament to the far-reaching impact of our initiatives, and it reinforces our resolve to create enduring value and ensure better outcomes for all.”

About GTCO

Guaranty Trust Holding Company Plc is the ultimate holding company of the GTCO Plc Group, one of the largest financial services institutions in Africa. Headquartered in Lagos, Nigeria, Guaranty Trust Holding Company Plc maintains direct and indirect investments in a network of operating entities located in 10 countries across Africa and the United Kingdom. Within these regions, the operating entities provide a comprehensive range of commercial banking and related financial services to millions of retail, institutional, private banking, and wealth management customers, in addition to asset management, pension fund administration, and payment technology businesses.

GTCO’s leadership in the banking industry and efforts at empowering people and communities have earned it many prestigious awards over the years. Guaranty Trust Bank is a Twelve-time winner of Euromoney’s Best Bank in Nigeria award and was recently named Nigeria’s Strongest Brand and Best Banking Brand in Nigeria by Brand Finance and Global Brands Magazine, respectively.