PZ Cussons plc (LSE:PZC) announced plan to maximise shareholder value through portfolio transformation, following a strategic review of brands and geographies. In March 2021 the Group set out a new strategy to return PZ Cussons to sustainable, profitable growth. Good progress has been made in building back critical capabilities and strengthening business foundations.

Despite this, shareholder returns have fallen short of the company?s expectations, predominantly due to macro-economic challenges in Nigeria which, since June 2023, has experienced the single largest devaluation in the history of its currency. The Board has carried out a strategic review of the company?s brands and geographies over the past year. It has 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.

This means its competitive advantages have been constrained in comparison to those of both larger multinational companies and some focused, smaller ones. Accordingly, the Board has decided to refocus the PZ Cussons portfolio on where the business can be most competitive and where it can create most value for shareholders. As such, the company is taking the following actions: Africa - The Group has made significant progress in strengthening and improving the performance of its sizeable operations in Africa, where it owns a highly attractive group of assets with leading consumer brands, strong operational infrastructure and continued growth potential.

However, the Board recognises that this is a complex group of assets and is therefore evaluating the strategic options both to reduce risk and to maximise shareholder value.