Speaking at Unilever Nigeria’s 81st AGM on 30 June, shareholders said the company needed to cut production costs in order to improve lacklustre results. It was suggested that this could be achieved through locally sourcing raw materials.
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At the meeting, Unilever Nigeria management revealed results for FY2005 – emphasising the 17% increase in top-line sales despite continued difficult trading conditions. The company reported poor results for the first quarter of 2006 – with profits dropping 289% since the first quarter of 2005 to minus-NGN980m (minus-US$7.69m). However, revenues declined only 44% to NGN4.777bn.
Shareholder representative Timothy Adesina said: “We commend the management, board and staff for the impressive account recorded during the period under review despite the harsh operating environment. But we are advising the management to look for a way of sourcing raw materials locally as this will go a long way to reducing the high cost of production.”
Speaking for the board, chairman of Unilever Nigeria Felix Ohiwerei said that management would consider the issues raised.
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