UNILEVER Nigeria divests from butter & other bread spread business
One of the major food and beverage companies UNILEVER Plc has disclosed its intention to divest from its spread (butter) business, no reason was given.
In the company, in a statement to the Nigerian Stock Exchange said, “we hereby give the NSE and the investing public notification of the recent announcement by Unilever Group of the intention to divest its spreads business as part of the outcome of the strategic review embarked on.”
Reports say the campaign by some advocte groups against consumption of fatty foods is said to have affected returns of investment on that business.
However, the company remarked that its intention to divest does not affect the activities of Unilever Nigeria Plc.
Meanwhile, Unilever Nigeria’s result for the first quarter ended March 31, 2017, (Q1‘17) shows continued growth as Profit After Tax, PAT grew by 60 % to N1.6 billion from N1.0 billion in the corresponding period of 2016.
The company also posted a turnover of N22.2billion, representing 32 per cent growth from N16.8 billion in Q1’16.
The company recorded a Profit Before Tax, PBT of N2.2 billion in Q1, 2017, representing a growth of 57 per cent from N1.4 billion in the corresponding period of 2016, while the operating costs increased by 31 % to N19.4 billion for the period ended March 2017 from N14.9 billion recorded in the corresponding period in 2016. Unilever, in statement to the NSE, said “we remain as a consumer and customer centric business, as we continue to meet varying needs of Nigerians.
Also, the company will not relent in its efforts to satisfy its consumers.
As a company, we will continue to deploy best practice marketing strategies, with high level of operational intensity in our continued investment in commercial and factory operations to expand our capacity and grow our market share.”