Unilever Nigeria sold the tea business for
N5.4 billion in October 2021 to reduce its exposure in the tea market, where it
generated a profit for the year of N2.72 billion between January to October
last year.
Although the tea business is now
wholly-owned by Unilever Tea MSO, Unilever Nigeria has been contracted to
assist in the manufacture and sale of the tea products for a fee based on a
Transitional Service Agreement.
However, “All proceeds from the sale are
remitted to Unilever Tea MSO Nigeria Limited and all costs incurred are charged
back to Unilever Tea MSO Nigeria Limited.” a statement in its Annual Financials
Statement for 2021 period, released on Monday, shows.
The discontinuation of the tea business
will drag down the turnover of Unilever Nigeria, as the tea segment contributed
N9.04 billion to the earnings of the firm within nine months in 2021 – with the
disposal, Unilever Nigeria will no longer earn from the tea market.
Meanwhile, Unilever Nigeria reported its
revenue for full year period of 2021 was N70.52 billion, against the N52.21
billion generated during the corresponding period of 2020.
The company exited 2020 loss of N3.96
billion with N1.12 billion profit for the year under review, signaling a return
to profitability for Unilever Nigeria.