Unilever Nigeria Plc has formally ceased the production and sale of its household care and skincare products, including iconic brands such as Omo, Sunlight, and Lux.
The decision, disclosed in the unaudited interim financial statements for the year ending December 31, 2023, marks the culmination of the company’s exit strategy from both markets, initially announced approximately 10 months ago.
In a statement sent to the Nigerian Exchange Limited (NGX) over the weekend, Unilever Nigeria revealed the appointment of Mr. Michael Ikpoki as the interim Chairman of the Board, succeeding His Majesty, Nnaemeka A. Achebe, Obi of Onitsha, who retired from the Board on December 31, 2023.
Highlighting that production and sales of household care and skincare products ceased in December 2023, Unilever Nigeria disclosed that the factory previously dedicated to these products has been leased to a third party for a 10-year period, with annual rental payments.
This strategic shift positions Unilever Nigeria to concentrate exclusively on its food, beauty and wellbeing, and personal care product categories.
The decision to exit the household care and skincare markets, initially unveiled on March 17, 2023, is mirrored in the company’s recent earnings report. Unilever Nigeria’s 2023 figures reveal a 45.1 percent year-on-year decline in revenue, totaling N16.48 billion compared to N23.92 billion in the previous year.
Furthermore, the company reported an increased loss of N3.72 billion for 2023, up from N1.49 billion in the preceding year, underscoring the financial implications of this strategic transition.
No comments:
Post a Comment