Thursday, 28 March

2019: Unilever Ghana makes GHS141m loss

Business
Unilever

Fast-moving consumer goods firm, Unilever Ghana, registered a loss of GHS141 million last year.

This is against a profit of GHS59 million in 2018.

As a result of the loss, Unilever Ghana’s basic earnings per share for 2019 was a loss of GHS2.26 per share as against GHS3.05 gain in 2018.

The operating loss margin was 51.7% as against a profit of 69.7% in 2018.

According to its unaudited 2019 financial statement, revenue for 2019 was GHS339.8 million compared with GHS632 million in 2018.

The results, the company said, reflected challenging trading conditions as well as the prioritisation of inventory reduction in its distribution network as highlighted in September 2019. 

Despite the loss, the management remains optimistic about the company’s outlook.

“Management retains a positive outlook for the business in the long term”, an extract revealed. 

Over the years, Unilever Ghana has been complaining of unfair trade practices, including the unbridled influx of inferior goods on the Ghanaian market.

It is unclear if the Unilever Group will dissolve the Nigerian management of the Ghanaian subsidiary as a result of the loss.

Unilever is presently selling at GHS16.40 per share on the Ghana Stock Exchange.

 

Source: Classfmonline.com