Unilever Nigeria Plc has officially halted the production and sale of home care and skin cleansing products, marking the realization of its plans to exit both markets, as announced about 10 months ago.
The decision was revealed in the company’s unaudited interim financial statements for the year ending December 31, 2023, submitted to the Nigerian Exchange Limited (NGX) over the weekend.
In tandem with this development, Unilever Nigeria also announced 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. This information was conveyed in a letter to the NGX by Mrs. Afolasade Olowe, Senior Counsel, and Company Secretary at Unilever Nigeria.
Unilever Nigeria initially signaled its intention to discontinue the production of home care and skin-cleansing brands, including popular names like Omo, Sunlight, and Lux, on March 17, 2023. The company confirmed that production and sales officially ceased in December 2023. The factory previously utilized for manufacturing these products has been leased to a third party for a duration of 10 years, with annual rental payments.
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The exit from the home care and skin-cleansing markets leaves Unilever Nigeria with a focus on its foods, beauty and wellbeing, as well as personal care product lines.
The company’s financials have reflected the impact of this strategic shift, with a reported 45.1% decline in revenue, amounting to N16.48 billion in 2023, down from N23.92 billion in the previous year. Additionally, the company incurred increased losses, rising to N3.72 billion in 2023 compared to N1.49 billion in the preceding year. The move aligns with Unilever Nigeria’s restructuring efforts to streamline its product portfolio and enhance overall business performance.
