Andre Schulten, while making the disclosure during his presentation at the Morgan Stanley Global Consumer & Retail Conference, explained that it was getting difficult to continue its operations in the country due to its harsh business environment.
By Saidu Idris
365Daily – Amidst concerns of job losses and increased price of medicines, Procter & Gamble, a household name in Nigeria, has announced that it will be leaving the Nigerian market, but would operate on an import only basis.
French pharmaceutical multinational, Sanofi, had earlier disclosed that it has begun to plot its exit from Nigeria, and has appointed a third party distributor to solely handle its commercial portfolio of medicines from February 2024.
GSK Nigeria, in August, also revealed that it is ceasing operations due to challenges associated with repatriating U.S. dollars, and would rely on a third party distribution method for its products.
P&G’s Chief Financial Officer, Andre Schulten, while making the disclosure during his presentation at the Morgan Stanley Global Consumer & Retail Conference on Tuesday, explained that it was getting difficult to continue its operations in the country due to its harsh business environment.
He stated, “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.”
The CFO detailed the restructuring programme, stating, “We are announcing a restructuring program with the intent to adjust the operating model and portfolio to maintain the discipline that has brought us to this point.” The focus of the program will be primarily on Nigeria and Argentina, with P&G intending to transition Nigeria into an import-only market, effectively dissolving its on-ground presence.”
He emphasised that this move would enable the company to focus on markets with the highest potential. Schulten also assured the move would not have any impact on the company’s profit margin, as the $50 million net sales business in Nigeria, compared to the company’s $85 billion overall portfolio, would not have any material effect.