By Peter Egwuatu
In view of the challenging business environment, which has now been complicated by the Covid-19 pandemic, the Board and management of Unilever Nigeria Plc has taken decision to tighten credit terms to address exposure to trade receivables and excess stock.
Addressing shareholders at the 95th Annual General Meeting, AGM of the Company, the Chairman of the Board, His Royal Majesty, Nnaemeka Achebe, commended the shareholders for their trust and loyalty to the Company.
He said: “These results reflect challenging operating conditions but also the Company’s decision to tighten credit terms to address exposure from trade receivables and excess stock in trade to better position the company for innovation and a return to competitive growth.
“Although we are not declaring dividend for FY 2019, we are optimistic because our results show that we made progress in some other critical areas of our operations which speaks to the fact that we are on the right path to growing our business for profitability and better returns on investment for our shareholders. Therefore, the task before the Board and Management is to drive our strategic objectives that would not only keep the business afloat but also ensure it operates efficiently.” Achebe said.
Meanwhile, Unilever Nigeria declared a turnover of N60.5 billion for the financial year ended December 2019.The N60.5 billion revenue in the year under review represents a decline compared to N92.89 billion recorded in the year ended December 2018. Profit after tax showed a decline at N7.42billion for 2019 compared to N10.55billion recorded for the year ended December 2018.
The Company in compliance with the Federal and State government directives on social distancing had decided to hold the AGM by proxy in a bid to avoid unnecessary physical contact among attendees, as part of measures to reduce the spread of the coronavirus.