There's much to admire about PZ Cussons. The company - best known for its Imperial Leather soap - has built a portfolio of premium personal-care brands, and put in place state-of-the-art manufacturing and research facilities. Right now, however, worries about its immediate prospects should blight its share price.
- Strong brands and efficient factories
- Interesting diversification moves
- Intense promotional pressure in the UK
- Threat of disruption in Nigeria
- Australian business is loss-making
- Raw material costs could rise further
Like the global giants that dominate its industry, PZ is well spread internationally, fitting for a group that began life in Africa. It has expanded into eastern Europe and Asia, yet counts the UK, Indonesia and Nigeria, where founders George Paterson and George Zochonis set up shop in 1899, as its key markets. Nigeria is also home to two important joint ventures that are helping PZ diversify from personal care – a nutrition venture with Irish dairy group Glanbia is growing quickly, while a palm-oil refinery being built with Swiss food group Wilmar should be completed by the end of 2012.