Unilever Nigeria, a leading consumer goods company, has officially ceased the production and sale of home care and skin cleansing products, marking the culmination of its exit plan from both markets. The decision was disclosed in the company’s unaudited interim financial statements for the year ending December 31, 2023, which were published on the Nigerian Exchange Limited (NGX).
The announcement follows Unilever Nigeria’s strategic move, declared 10 months ago, to withdraw from the home care and skin cleansing segments. In its earnings report, the company stated that production and sales activities in these categories came to a halt in December 2023.
As part of its exit strategy, Unilever Nigeria revealed that the factory previously dedicated to producing home care and skin cleansing products has been leased to a third party. The leasing arrangement is set for 10 years, with annual rental payments.
Unilever Nigeria’s restructuring leaves the company focusing on its foods, beauty and wellbeing, as well as personal care product lines. The decision aligns with the company’s efforts to streamline its portfolio and enhance operational efficiency.
Despite this strategic shift, the company faced financial challenges leading up to the exit. The financial report highlighted a 45.1 percent year-on-year decline in revenue, dropping from N23.92 billion in 2022 to N16.48 billion in 2023. Additionally, Unilever Nigeria reported an increased loss of N3.72 billion in the same period, compared to the previous year’s N1.49 billion.
This move underscores Unilever Nigeria’s commitment to adapting its business model, focusing on core product categories, and optimizing resources for sustained growth in the dynamic consumer goods market.