Fakoyejo Olalekan
The management of Unilever Nigeria has concluded to sell part of the company’s Home and Personal Care manufacturing arm in the third quarter of 2022, to raise funds, amid declining profit in the second quarter.
Unilever Nigeria’s Home and Personal Care segment comprises of household products; Omo, Lifebuoy, Dove, Axe, Rexona, Vaseline, Knor, as well as Lux. The manufacturing arm will be sold for N262 million.
Join our WhatsApp ChannelAccording to a statement seen by Prime Business Africa, negotiation has begun with a potential buyer, and the sale is expected to be completed by September 2022, “During the year, management committed to a plan to sell part of its manufacturing facility within the Home and Personal Care segment.
“Accordingly, part of that facility is presented as assets held for sale at the carrying amount of N262 million. Efforts to sell the disposal group have reached an advanced stage and sale is expected by September 2022.” Unilever Nigeria said.
Unilever Nigeria’s profit declining
The sale of the Home and Personal Care manufacturing facility comes amid cost of production weighing on turnover in Q2, as Unilever Nigeria spent N16.2 billion to have its goods produced, having expended N11.8 billion in the corresponding period of 2021.
During the same quarter under review, Unilever Nigeria had generated N23.2 billion in Q2 2022, surpassing the N16.3 billion revenue grossed in Q2 last year.
However, profit after tax slowed between April to June, as Unilever Nigeria posted N110.3 million as profit for the period, falling short of the N1.2 billion recorded during the same period in Q2 2022.
Meanwhile, the sale of the Home and Personal Care manufacturing facility is not just the only facility that Unilever Nigeria will be raising funds from. The management had also sold the company’s tea business for N5.4 billion in October 2021 to another firm, Unilever Tea MSO Nigeria Limited. As of Q2, Unilever Nigeria currently held N63.5 billion in the bank.
