Unilever Nigeria closes Homecare, Skin Cleansing businesses

… leases factory building to third party for 10 years

Production and sales for the home care and skin cleansing business categories of Unilever Nigeria Plc ceased in December 2023.

After the company’s exit from the Home Care and Skin Cleansing categories, the factory buildings have been leased to a third party for 10 years, with annual rental payments.

The company’s statement of profit or loss and Other Comprehensive Income (OCI) were presented separately to show the discontinued operation.

These products include Omo washing powder, Key soap, Pears baby care goods, Vaseline petroleum jelly, and Lux soap.

These were disclosed by Unilever Nigeria Plc in its recently released unaudited interim financial statements for the year ended December 31, 2023.

Unilever Nigeria Plc on March 17, 2023, decided to exit the Homecare and Skin Cleansing categories.

The company’s revenue rose to N97.43 billion in last year from N64.64 billion in 2022.

The company’s after-tax profit also surged to N8.54 billion from N4.47 billion. The increase can be attributed to improved cost margins and an uptick in exports,the company says.

A breakdown of the statement showed that export revenue rose by 145.9 percent to N2.68 billion. It reported a loss from discontinued operations of N3.73 billion, up from N1.49 billion in 2022.

Finance income rose to N17.13 billion from N9.11 billion, primarily due to interest on call deposits and bank accounts.

Marketing and administrative expenses reduced to N13.33 billion from N14.12 billion on the back of a decline in royalties.

However, selling and distribution costs increased to N29.87 billion from N26.33 billion.

Other income increased to N986.9 million from N161.85 million, driven by promissory notes.

Net cash flow from operating activities stood at N2.69 billion, down from N12.03 billion.

Net cash flows from investing activities was N1.24 billion, while net cash used in financing activities incurred was N7.27 billion.