The company which operates in some 180 countries of the world, produces a range of products for the Nigerian market, including Always sanitary pad, Pampers, Ariel detergent, Oral B toothpaste, and Gillette shaving stick.
The multinational consumer goods giant Procter & Gamble (P&G) on Tuesday announced its plans to transition from local production to solely importing its products as it winds down its on-ground presence in Nigeria.
Business Insider Africa reports that the American company stressed challenges in conducting business as a dollar-denominated organization and attributed its strategic decision to the macroeconomic conditions in Nigeria.
The company which operates in some 180 countries of the world, produces a range of products for the Nigerian market, including Always sanitary pad, Pampers, Ariel detergent, Oral B toothpaste, and Gillette shaving stick.
The Chief Financial Officer of the group Andre Schulten stated this during his presentation at the Morgan Stanley Global Consumer & Retail Conference on Wednesday.
Schulten said: “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 said.
He explained 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.