Unilever Nigeria stops production of Omo, others despite 51% turnover growth

Unilever Nigeria Plc says it has stopped the production and sale of home care and skin cleansing products.

The company which disclosed this in its unaudited interim report for the twelve months ended 31st December 2023, also revealed a turnover of N97.4 billion in the period under review which represents 51% topline growth compared to N64.6 billion turnover recorded in the corresponding period in 2022.

Daily Trust reports that Unilever had announced in 2023 ‘a planned end to the production of its popular brands, including Omo, Sunlight and Lux’.

In the financial statements submitted to Nigerian Exchange Limited (NGX) at the weekend, it said it has leased out its the factory buildings where its home care and skin cleansing products are being produced, to a third party for 10 years, with annual rental payments.

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The products affected are Omo washing powder, Key soap, Pears baby care goods, Vaseline petroleum jelly, and Lux soap.

“The factory used to produce the home care and skin cleansing products has been leased out to a third party.

“Subsequent to 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 homecare and skin-cleansing markets leaves the company with just the foods, beauty and wellbeing, as well as personal care products,” it said.

Meanwhile a breakdown of the financial statements indicated a gross profit of N29.8 billion for the period ended 31st December 2023 which is a 13.69% increase against N26.3 billion reported for the same period 2022.

Net profit for the total business grew 88.89% to N8.5 billion for the period ended 31st December 2023 compared to the N4.5 billion net profit from the corresponding period in 2022.

Net profit from ongoing operations, adjusting for portfolio changes made in 2023, grew 106% to N12.3 billion for the period ended 31st December 2023 compared to the like-for-like portfolio net profit of N6.0 billion for the corresponding period in 2022.

In another statement, the company disclosed that it has appointed Mr Michael Ikpoki as interim Board Chairman to replace His Majesty, Nnaemeka A. Achebe, Obi of Onitsha, who retired from the Board effective 31st December 2023.