Market's view on Pz Cussons
Published on April 2024
- Nigeria’s naira has seen significant fluctuations in value against the GBP, affecting international business transactions.
- The company is focusing on reducing its gross debt to between £160M and £180M by the end of 2024, aiming to streamline operations and enhance brand value.
- The St Tropez brand, popular in the USA and other regions, is highlighted as a strong asset, potentially worth around £100M.
- Plans are discussed regarding the sale of certain African business segments, aiming to focus more on core brands like Carex, Original Source, and Child’s Farm.
- A simplified corporate structure, particularly in Nigeria, is suggested to make the company more attractive for potential acquisition.
- Concerns are raised about the company’s decision to sell off brands to manage debt, indicating possible financial distress.
- Discussions about potential arbitrage opportunities based on discrepancies between local and international stock prices.
- Observations note the naira’s recovery, yet the company’s share price has significantly declined, reflecting poor market sentiment.
- Trading updates are awaited with cautious optimism amid stabilising conditions in Nigeria.
- Concerns about the rapid succession of CEOs and the lack of board members purchasing shares, suggesting internal uncertainty.
- The possibility of a corporate bid is speculated due to the company’s ongoing challenges and strategic adjustments.