Shareholders Of Unilever Nigeria Raises Concern Over Losses … Approves’ Separation Of Tea Business

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Nnaemeka Alfred Achebe Chairman Unilever Nigeria Plc

Shareholders of Unilever Nigeria Plc has expressed concern over the poor performance of the multi-national company, which had led to losses as shown in its key indicators for the period ended December 31, 2020.

Just as the shareholders also approved the board of directors’ request to separate the company tea business (Lipton Tea), and all its assets.

The shareholders made their displeasure among other issues known on Thursday May 6, 2021 at the company 96th Annual General Meeting (AGM) in Lagos, urging the board to improve the company performance.

Other concerns of the shareholders were lack of dividend in the past two year, while the directors, management and staffs are getting their remunerations. The issue of five banks that are not list on Nigeria stock market, but are doing business with the company was raised, because they add no value to shareholders.

Responding to shareholders questions and comments, chairman of the board of directors Igwe Nnaemeka Alfred Achebe said all the issues raised will be addressed comprehensively in a statement that will be send to all shareholders.

Although, the managing director, Mr Carl Cruz who attended virtually explained that over the past years the board and management try to bring the company to growth and profit, increase relevance in the mind of consumer and win more market share.

The executive director finance, Adesola Sotande Peters, commenting on the issue of impairments and receivable, said it has to do with delay in documentation involving business activities in Côte d’Ivoire and Ghana, which they will resolved before the end of the year.

Mr Mutiu Sunmonu, who spoke on the tea business separation, assured all stakeholders, particularly the minority shareholders that their interests are well protected. Adding that they have mandated the executive committee of the company to come with strategy on how to close the gap that will be created with the separation of the tea business.

Highlights of the Unilever interim unaudited financial statement for the period ended March 31, 2021, shows that overall, the company recorded loss after tax of N.5bn compared to profit after tax of N1.1bn reported for the corresponding period in 2020.

The Company recorded Turnover of N19.4 bn in the period under review which represents 46% growth compared to N13.3bn recorded in the corresponding quarter of 2020.

The result showed that the company recorded a gross profit of N4.5bn for the quarter ended 31st March 2021 which is 31% up versus N3.4bn reported for same period last year.

Some of the shareholders that made comments and asked questions includes, Mr Nornah Awoh Mr Bright Nwabuogwu, Mr Patrick Ajidua, Ms Ganiat Adetutu Siyanbola and Robort Ibekwe that represented Sir Sunny Nwosu.

Unilever Nigeria share price on the floor of Nigerian Exchange Limited (NGX) was N12.30 kobo at the close of trading business on Thursday May 6, 2021.

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