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Wednesday, 29 October 2014
Unilever Nigeria Suffers 49% Fall In 9-month Pre-tax profit
VENTURES AFRICA – Nigerian unit of Anglo–Dutch multinational company Unilever said on Tuesday pre-tax profit for the nine months ended September 30 fell 49 percent to N2.54 billion ($15.38 million), compared with N5.03 billion of the corresponding period of last year.
The NSE-listed household product maker’s revenue also dropped to 4 percent to N43.63 billion, from N45.61 billion last year, the company- Nigeria’s oldest manufacturing- said in a filing with the Nigerian Stock Exchange.Unilever said in September that it will be investing as much as 150 million Euro ($194 million) across its Nigerian production lines in a move to enhance local production capacity as well boost relations with domestic raw material suppliers. Unilever global CEO, Paul Polman said then that the company has invested 50 percent of its turnover in Nigeria in the last three years with the the country now holding around 50 percent of all its investments in Africa.
The company’s Kenyan unit also said last month that it intends to invest $190.7 million in infrastructural development as it seeks to exploit East Africa’s growing middle class, armed with more disposable income whose demand for consumer goods have increased.
“Our Nairobi-based site, which is the hub of the East African business, will not be able to meet the rapidly growing business needs of our consumers by 2016,” said Paul Polman, Unilever chief executive in an interview with Smart Company.
The new development – a factory and a warehouse- is expected to replace the current one which dates back to 1950s when the international FMCG firm opened shop in Kenya when it acquired a 50 percent stake in East African Industries at the time.