Unilever Nigeria Plc, a subsidiary of the British-Dutch consumer goods company Unilever Plc, has announced that it has stopped production and sales of its home care and skin cleansing products, which include Omo, Sunlight, and Lux.
On Wednesday, the company revealed its unaudited interim financial reports for the year, concluding on December 31, 2023. This information was made public on the Nigerian Exchange Limited (NGX).
According to the statement, the decision to exit the home care and skin cleansing categories was made on March 17, 2023, as part of the company’s aim to “concentrate on higher growth opportunities” and “reduce exposure to devaluation and currency liquidity.”
“These categories are margin dilutive, and the exit is part of the company’s aim to make its operation in Nigeria competitive and profitable,” the statement said.
The company also revealed that the factory buildings used to produce the home care and skin cleansing products have been leased to a third party for a duration of 10 years, with annual rental payments.
With this exit, Unilever Nigeria will focus on its foods, beauty and wellbeing, and personal care products, which it hopes will boost its revenue and profitability.
The company reported a decline in revenue and an increase in losses in 2023, compared to the previous year. Revenue fell by 45.1 percent year-on-year to N16.48 billion, from N23.92 billion grossed between January and December 2022. Loss after tax increased to N3.72 billion from N1.49 billion in the same period.
Carl Cruz, the CEO of Unilever Nigeria, said in a statement issued in March that the company needed to adapt to changing market circumstances and reposition itself to better meet the needs of its consumers, shareholders, and employees.
“All companies need to adapt to changing market circumstances, and now is the right time for us to reposition Unilever Nigeria Plc. to better meet the needs of our consumers, shareholders, and employees,” he said.
He also assured that the exit from the home care and skin cleansing categories would be gradual and not dramatic.