Unilever Nigeria Plc, one of the most valuable companies on the Nigerian stock exchange, has announced a significant shift in its business model.
The consumer goods company will stop manufacturing some of its popular products, including Omo and Lux, in a bid to drive profitability and navigate a weak naira challenge.
Unilever Nigeria has been in operation in the country for over 100 years.
The move will see Unilever exit two categories, Home Care and Skin Cleansing, which will affect several well-known brands, including Sunlight, Dove Beauty Bar, Lux soap, Pepsodent Toothpaste, vaseline, Lifebuoy, and Rexona products, among others.
The company will likely sell its home and skin care unit to another company.
In a statement sent to the capital market, Unilever informed shareholders that the changes will accelerate growth, sustain profitability, and enhance the company’s ability to meet consumer needs.
Unilever plans to repurpose its portfolio and make the business more efficient and future-fit.
This will involve exiting the Home Care and Skin Cleansing categories to concentrate on higher growth opportunities.
Unilever believes that the new business model will reduce exposure to devaluation and currency liquidity.
The company also noted that offloading its home care and skin cleansing portfolios would enable the management to “concentrate on higher growth opportunities.”
The move is expected to reposition the company to better meet the needs of consumers, shareholders, and employees.
Unilever plans to strengthen business operations by digitizing and simplifying processes and focusing more on business continuity measures that reduce exposure to devaluation and currency liquidity.
Unilever Nigeria’s exit from these two categories in 2023 is expected to result in an overall improvement in profitability, growth, and a more sustainable Unilever Nigeria Plc.
