PZ Cussons, has revealed plans to sell off the tanning brand St Tropez while also reviewing it’s operations in Africa deciding to “refocus the group’s portfolio on where it can be most competitive”.
The personal care giant is looking to find new owners for St Tropez, which was bought by PZ Cussons for £62.5 million in 2010, who will be “better placed to capture the brand’s significant long-term potential”.
The announcement comes in the wake of tough times for the Manchester-based group as the performance of the brand has been harshly impacted by volatility in the Nigerian economy. Imperial Leather has a huge market in this region representing more than a third of its total sales.
The ongoing devaluation of the Nigerian naira, which has depreciated by an average of 60% year-on-year in the first quarter of 2024, while inflation rates have soared to nearly 30%, the highest in three decades meant that the firm sank to a £94.2m loss in the half-year to December.
In an update on Wednesday, it revealed that revenues plunged 23.7% for the three months to March 31, but, with currency movements stripped out, like-for-like sales lifted 6.4%.
Sales by volume grew 0.2% against a first-half decline of 4.9%, thanks to improved trading across UK brands.
Excluding Africa, like-for-like revenues fell 2.9%, against a 3.9% drop in the first half.
PZ Cussons said in a statement: "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."
Chief executive Jonathan Myers added: "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."