THE WHAT? PZ Cussons, the multinational company behind Imperial Leather, has announced strategic shifts including the sale of its St Tropez self-tanning brand and a thorough review of its operations in Africa, particularly in response to economic challenges in Nigeria. This decision follows a comprehensive review aimed at sharpening the company’s focus on more competitive sectors of its portfolio.
THE DETAILS Acquired in 2010 for £62.5 million, St Tropez is set to be sold to a new owner capable of maximizing its long-term market potential, signaling PZ Cussons’ intent to streamline its brand portfolio. Meanwhile, the company is grappling with significant economic volatility in Nigeria, a critical market that contributes over a third of its sales. This includes dealing with a severe devaluation of the Nigerian naira and record-high inflation rates, impacting the company’s overall financial performance. For the three months ending March 31, 2024, PZ Cussons reported a revenue decline of 23.7%, although like-for-like sales adjusted for currency fluctuations saw a 6.4% increase.
THE WHY? The strategic refocus comes as PZ Cussons faces a £94.2 million loss for the half-year to December 2023, prompted by adverse economic conditions in Nigeria and complex asset management across Africa. The company acknowledges that its current spread across various markets and sectors has diluted its competitive edge, particularly against larger multinationals and more specialized firms. CEO Jonathan Myers emphasized the need for a transformative approach to tackle macro-economic challenges and streamline operations to harness the business’s full potential.
Clinical aesthetics products refer to a category of products used in the field of medical aesthetics or cosmetic dermatology. These products are typically designed and formulated to be used under the supervision of healthcare professionals, such as dermatologists, plastic surgeons, or trained aestheticians. They are distinct from over-the-counter cosmetics in that they often contain active ingredients or formulations that require expertise in their application or administration.
Examples of clinical aesthetics products include:
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Dermal Fillers: Injectable substances used to add volume, smooth wrinkles, and enhance facial contours. Examples include hyaluronic acid fillers like Juvederm and Restylane.
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Botulinum Toxin (Botox): Injectables that temporarily paralyze facial muscles to reduce the appearance of wrinkles caused by repetitive movements, such as frown lines and crow's feet.
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Chemical Peels: Solutions applied to the skin to exfoliate and improve its texture. They can treat acne, pigmentation issues, and signs of aging.
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Laser and Light Therapies: Devices that emit focused light or laser energy to treat various skin conditions, including acne, scars, and signs of aging.
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Prescription Skincare Products: Formulations containing active ingredients like retinoids (vitamin A derivatives), hydroquinone, or prescription-strength antioxidants to address specific skin concerns under medical supervision.
