Hardship: PZ Cussons Nigeria Faces Existential Problems

by J.J Olawuyi

On March 13, a discussion was convened to examine the situation at PZ Cussons, which is in the process of becoming a privately-owned company.

This follows a buyout offer from PZ Cussons (Holdings) Limited to acquire the shares of minority investors for N24.4 billion, or N23 per share.

Speaking with Newsmen, Folorunso Adeleye, an expert chartered accountant and the leader of the internal audit and compliance team at Superflux, a Lagos-based firm specializing in commercial and variable data printing, provided his perspective on the financial predicaments facing PZ Cussons.

Adeleye identified the potential peril if the company has a considerable amount of foreign currency debts and obligations.

He noted that if the financial troubles are primarily due to these foreign currency loans, the situation might not be as dire, as an improvement in the exchange rate could reduce the naira equivalent of the debt.

On the flip side, he cautioned that if PZ Cussons is dealing with low income and a significant amount of unpaid invoices, it could find itself in deeper financial distress.

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