Procter & Gamble (P&G), a global company operating in about 180 countries, manufactures a variety of products for the Nigerian market. These products include Always sanitary pads, Pampers diapers, Ariel detergent, Oral B toothpaste, and Gillette shaving sticks has announced it will exit from Nigeria.
The Chief Financial Officer of Procter & Gamble, Andre Schulten, made these remarks during his presentation at the Morgan Stanley Global Consumer & Retail Conference.
Procter & Gamble cited challenges related to operating as a dollar-denominated organization and attributed its strategic decision to withdraw from Nigeria to the prevailing macroeconomic conditions in the country.
Schulten words: “The other reality that arises in some of these markets is that it gets increasingly difficult to operate and create U.S dollar value. So, when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment.”
“So, with that in mind, we are announcing a restructuring program with the intent to adjust operating model and adjust the portfolio to ensure that we maintain the portfolio discipline that has brought us to this point,”
“The restructuring program will largely focus on Nigeria and Argentina. We’ve announced that we will turn Nigeria into an import-only market, effectively dissolving our footprint on the ground in Nigeria and reverting to an import-only model,” he explained.
The Chief Financial Officer (CFO) revealed that Nigeria contributes $50 million in net sales to the business. Considering the company’s overall portfolio valued at $85 billion, the CFO does not expect any significant impact on the group’s balance sheet in terms of sales or profitability.
