The earnings of Unilever Nigeria Plc, one of the oldest manufacturers in the country, rose almost 12-fold in the second quarter of 2024 after its exit from homecare business. According to the fast-moving consumer goods firm’s latest financial statement, its after-tax profit rose by 1,081 percent to N1.08 billion in Q2 from N91.
5 million in the same period of 2023. The manufacturer’s first-half profit also jumped to N4.44 billion from N2.
76 billion in the same period of last year. “On March 17, 2023, Unilever announced its intention to exit the home care business categories in Nigeria. The company exited the homecare business category in September 2023.
All production of home care products ceased in June 2023 and sales ceased in September 2023, following a strategic decision to place greater focus on the company’s margin accretive products,” the firm said in a statement. It said the business categories have been evaluated by management for reporting in line with IFRS 5, non-current assets held for Sale, and discontinued operations and that the home care segment does not meet the requirement for a disposal group or is held for sale, as the assets were not sold but leased out. “However, it represents a separate major line of business and has been reported as discontinued operations.
The home care segment was not previously classified as a discontinued operation. The comparative statement of profit or loss and OCI has been re-presented to show the discontinued operati.