Unilever Nigeria has officially halted the production and sale of essential home care and skin cleansing products, including popular brands like Omo, Lux, and Sunlight. 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) on January 17, 2024.
The multinational company had initially announced its intention to discontinue these product lines back in March 2023, citing persistent losses in those markets.
The company’s exit from the home care and skin cleansing sectors was implemented 10 months after the initial announcement, with the production of these products ceasing in December 2023.
In a strategic move, Unilever Nigeria has leased its factory used for the production of these discontinued products to a third party. The terms of the lease involve a 10-year agreement with annual rental payments. Pascal Oparada, a seasoned journalist with over a decade of experience covering various industries, reported on Unilever Nigeria’s recent developments, shedding light on the company’s shift in focus. With the cessation of home care and skin cleansing products, Unilever Nigeria now directs its attention solely to the foods, beauty well-being, and personal care product categories.
This move comes as Unilever Nigeria faces financial challenges, as evidenced by a significant decline in revenue and an increase in losses. The company’s revenue plummeted by 45.1% year-on-year, dropping from N23.93 billion in 2022 to N16.48 billion in 2023. Simultaneously, Unilever Nigeria reported a loss of N3.72 billion in 2023, marking a notable increase from the previous year. In a parallel development, another major player in the healthcare industry, GlaxoSmithKline (GSK), has announced its decision to exit Nigeria after 51 years of operations. The British multinational biotech firm disclosed its plans to discontinue the commercialization of its top medicines and vaccines in Nigeria, opting for a third-party direct distribution model.
