This information was made known by the Secretary of Unilever Nigeria, Abidemi Ademola, who made the revelation in a company notification to the Nigerian Exchange Limited and signed.
Unilever says that by changing its business strategy, it will be able to develop faster and better for the benefit of customers, shareholders and staff.
The company also stated that it expects the withdrawal of these two categories by 2023 to increase profitability, business growth, and sustainability.
The statement released is in part, “This will involve repurposing the portfolio by exiting the home care and skin cleansing categories to concentrate on higher growth opportunities.
Strengthen business operations with measures to digitize and simplify processes; and more focus on business continuity measures that reduce exposure to currency devaluation and liquidity in our business model.
Unilever Nigeria’s home care and skin care brand is worth N50 billion, but the company says its profits in Nigeria are not maximizing it, as it looks to explore other markets.
Nigeria’s beauty and personal care industry is anticipated to generate $7.87 billion by 2023, according to Statista, a German company that conducts market research. Through 2027, this market sector is anticipated to grow by 16% annually.
According to Nigeria Observer, Nigerian news platform Unilever Nigeria Plc has two business segments, which are food products, and home and personal care. “In 2022, the company realizes N88.72 billion as revenue from the food products segment generates N42.6 billion or 48 percent while home and personal care generates N46.09 billion or 52 percent of the company’s revenue. This revenue is generated in Nigeria.
The company’s revenue in 2022 was 25.8 percent higher than the N70.52 billion generated in 2021. And with a revenue of N31.01 billion in 2021, the food products segment contributed 44 percent of Unilever Nigeria’s revenue while home and personal care generated N39.51 billion, representing 56 percent of the company’s total revenue.
Profit before tax in 2022 was N9.86 billion, divided into N4.74 billion from food products, while home and personal care accounted for N5.12 billion. By 2021, the profit of food products before tax is N906.26 million, while that of home and personal care is about N1.15 billion.