Unilever Nigeria Plc has announced the cessation of production and sale of its home care and skin cleansing products, including popular brands like Omo, Sunlight, and Lux. This revelation was made in the company’s unaudited interim report for the twelve months ending December 31, 2023, where it also disclosed a significant turnover growth of 51%, amounting to N97.4 billion compared to N64.6 billion in the corresponding period of 2022.
The financial statements, submitted to the Nigerian Exchange Limited (NGX), outlined that Unilever has leased the factory buildings responsible for producing home care and skin cleansing products to a third party for ten years, with annual rental payments.
The affected products include Omo washing powder, Key soap, Pears baby care goods, Vaseline petroleum jelly, and Lux soap.
Unilever Nigeria explained, “The factory used to produce the home care and skin cleansing products has been leased out to a third party. After the company’s exit from the Home Care and Skin Cleansing categories, the factory buildings have been leased to a third party. This is for 10 years, with annual rental payments. Unilever Nigeria’s exit from the home care and skin-cleansing markets leaves the company with just the foods, beauty and wellbeing, and personal care products.”
Despite this strategic shift, the financial report revealed positive performance indicators. The company reported a gross profit of N29.8 billion, reflecting a 13.69% increase from N26.3 billion in 2022. Net profit for the total business witnessed an impressive 88.89% growth to N8.5 billion for the period ending December 31, 2023, compared to the N4.5 billion net profit in the corresponding period of 2022.
Adjusting for portfolio changes made in 2023, the net profit from ongoing operations experienced a remarkable 106% increase, reaching N12.3 billion for the period ending December 31, 2023, compared to the like-for-like portfolio net profit of N6.0 billion in the corresponding period of 2022.
Additionally, Unilever Nigeria announced the appointment of Mr. Michael Ikpoki as the interim Board Chairman, replacing His Majesty, Nnaemeka A. Achebe, Obi of Onitsha, who retired from the Board effective December 31, 2023.
