Why Unilever Nigeria Is Stopping Its Home Care and Skin Cleansing Business

Unilever Nigeria is one of the leading FMCG giants in Nigeria and a subsidiary of Unilever Plc, a British-Dutch multinational company. In a report sent to the Nigeria Exchange Limited (NGX), the company announced that it would be stopping its home care and skin cleansing business in a bid to reposition its business and sustain profitability.

After sending the report on closing the two sections to the Nigeria Exchange Limited (NGX), the Company Secretary, Abidemi Ademola signed. According to the company's statement, the changes in the business model were aimed at positioning the company for more sustainable growth to meet the needs of consumers, shareholders, and employees. The company plans to concentrate on higher growth opportunities and strengthen its business operations through digitization and process simplification.

The decision was made at a meeting of the Board of Directors held on March 16, 2023, at the company's headquarters in Lagos. The meeting, which was attended by the company's top executives and Board members, saw the acceptance of the proposed changes, including the amendments and other motions that were brought before them.

Unilever Nigeria also intends to implement business continuity measures that reduce exposure to devaluation and currency liquidity in its business model. The company believes that these changes will contribute significantly to its overall goal of becoming a more sustainable and profitable business.

The decision to exit the Home Care and Skin Cleansing categories may seem drastic, but it is not unusual for businesses to restructure their operations to remain competitive and profitable. Unilever Nigeria's move is likely to have been driven by market trends, including changing consumer preferences, increased competition, and economic conditions.

By focusing on higher growth opportunities, Unilever Nigeria hopes to boost its revenue and profitability in the long term. The company's decision to digitize its operations and simplify its processes is also likely to lead to cost savings and operational efficiencies, which will further improve its bottom line.

What Is Unilever’s Current Stock Price?

Current Report: On Tuesday, March 21st, Unilever Nigeria current stock price is 14.00, which remained unchanged from the previous trading session. However, over the last four weeks, the stock has experienced a decline of 6.06 percent. Over the past 12 months, Unilever Nigeria's stock price has risen by 1.45 percent.

Based on global macro models projections and analysts' expectations, Trading Economics forecasts that Unilever Nigeria will be priced at 13.72 by the end of this quarter and at 12.91 in one year. However,

What Is Unilever's Current Dividend?

Unilever Nigeria's current dividend yield is relatively low at 3.6% Compared to the top 25% of dividend-paying companies in the Nigerian market with a yield of 8.27%, 

What Are the Products Unilever Is Producing Currently?

According to the report sent to the NGX and signed by the Company Secretary, Abidemi Ademola, the following brands will be affected:

• Sunlight (Detergent and Dishwashing)

• OMO

• LUX

• Lifebuoy

• Dove

• AXE &

• Rexona

While the following brands are still in operation:

CURRENT FOOD PRODUCTS BY UNILEVER NIGERIA PLC

• Blue Band Margarine

• Lipton Yellow Label Tea

• Royco Bouillon Cubes, and

• Knorr Bouillon cubes

CURRENT PERSONAL CARE PRODUCTS UNILEVER NIGERIA PLC

• Close-Up Toothpaste

• Pepsodent Toothpaste

• Pears Baby Products Range

• Vaseline Lotion and Petroleum Jelly

What Is Unilever Current Market Capitalization?

Unilever's market capitalization is NGN 80.4 billion, Unilever Nigeria is currently ranked as the 27th most valuable stock on the NGX, accounting for approximately 0.269% of the Nigerian Stock Exchange's equity market.

Conclusion

In conclusion, Unilever Nigeria's decision to exit the Home Care and Skin Cleansing categories and reposition its business is a strategic move aimed at ensuring the company's sustainability and profitability. The company's focus on higher growth opportunities, business continuity measures, and digitization is likely to lead to significant improvements in its growth and profitability in the long term.