Unilever Nigeria shuts down Homecare, Skin Cleansing businesses
By Oliwaseyi Lawal
Unilever Nigeria Plc has discontinued production and sales in the home care and skin cleansing business categories.
Following the company’s withdrawal from these categories, the factory buildings have been rented to a third party for a duration of 10 years, involving annual rental payments. To reflect this change, the company’s statement of profit or loss and Other Comprehensive Income (OCI) were presented separately, highlighting the cessation of operations in these categories.
Unilever Nigeria Plc recently revealed a list of products, including Omo washing powder, Key soap, Pears baby care items, Vaseline petroleum jelly, and Lux soap, in its unaudited interim financial statements for the year ending December 31, 2023.
On March 17, 2023, Unilever Nigeria Plc made the strategic decision to discontinue its involvement in the Homecare and Skin Cleansing categories.
Notably, the company experienced a noteworthy increase in revenue, climbing from N64.64 billion in 2022 to N97.43 billion in the past year. Simultaneously, the after-tax profit surged to N8.54 billion from N4.47 billion, attributed to enhanced cost margins and an upswing in exports, according to the company’s statement.
Breaking down the statement, export revenue experienced a notable 145.9 percent increase, reaching N2.68 billion. The company recorded a loss of N3.73 billion from discontinued operations, marking a rise from N1.49 billion in 2022. Finance income witnessed a surge to N17.13 billion from N9.11 billion, primarily driven by interest on call deposits and bank accounts.
While marketing and administrative expenses decreased to N13.33 billion from N14.12 billion due to a decline in royalties, selling and distribution costs rose to N29.87 billion from N26.33 billion. Other income saw a substantial increase to N986.9 million from N161.85 million, attributed to promissory notes.
The net cash flow from operating activities decreased to N2.69 billion from N12.03 billion. Net cash flows from investing activities amounted to N1.24 billion, and net cash used in financing activities incurred was N7.27 billion.