Unilever Ghana, a leading consumer goods company, has reported impressive financial results for the year 2022. The company’s revenue increased to GH¢632million, a significant rise from the GH¢527million recorded in the previous year. Moreover, Unilever Ghana achieved a post-tax profit of GH¢15.08million, compared to GH¢0.4million in 2021, a 3,650 percent growth.
Speaking at a ‘Facts behind the Figures’ session organised by the Ghana Stock Exchange (GSE), George Owusu-Ansah, the Managing Director of Unilever Ghana, attributed the improved turnover to strategic investments in expanding coverage, fostering innovation, and enhancing the equity of its core brands. He highlighted the positive impact of these efforts on the company’s heritage brands, such as Key Soap, Pepsodent and Geisha. Despite the challenges posed by the pandemic and supply chain disruptions, Owusu-Ansah commended the team’s resilience in achieving such remarkable results.
“It is a testament to the good work the team has done to turn the situation around after what was a very trying period. That this has been accomplished at a time when the effects of the pandemic and the ensuing supply chain disruptions have occurred, in my humble opinion, makes it even more remarkable,” Mr. Owusu-Ansah said.
He added that Unilever Ghana focused on enhancing efficiency, reducing waste, implementing robust credit control measures, and navigating inflationary pressures to bolster its profitability. Owusu-Ansah emphasised the company’s commitment to its purpose of “Making Sustainable Living Commonplace” and its dedication to delivering long-term value to stakeholders, as evidenced by the company’s growth trajectory since 2020.
Analysing the performance by segment, the Beauty & Personal Care (BPC) category experienced a remarkable underlying sales growth of 27.6 percent. This growth was driven by the strong performance of personal and oral hygiene products, such as Pepsodent and Lifebuoy. In contrast, the Home Care segment remained steady, but Unilever adapted by introducing smaller packaging for its leading product, Key Soap, in response to reduced consumer purchasing power. The Nutrition Business Group, previously known as the Foods and Refreshment category, achieved an impressive underlying sales growth of 60.4 percent.
In line with its commitment to sustainability, Unilever Ghana actively engaged in projects aimed at collecting plastic waste and promoting second-life solutions in collaboration with the Ghana Recycling Initiative by Private Enterprises (GRIPE). The company also extended support to schools and communities across the country, focusing on educating people about oral and personal hygiene habits.
Looking ahead, Unilever Ghana aims to consolidate its gains, particularly by strengthening its cash position through the use of technology and maintaining a strong focus on sustainability. The company also aims to achieve a 50 percent gender parity in its workforce by 2025, with a minimum of five percent representation of “differently-abled” individuals.
Already, the company has made a strong start in 2023, reporting a first-quarter revenue of GH¢241.8million, a substantial year-on-year growth of 60.7 percent compared to the same period in 2022. This growth can be attributed to improved gross margins resulting from effective turnover leverage, strategic pricing decisions, and efficient cost controls.
Investors have responded positively to Unilever Ghana’s impressive performance, evident in the growth of its stock value. The company began the year with a share price of GH¢3.88, and it has experienced a remarkable increase of 60.8 percent in its valuation. As of the end of June 2023, the stock was trading at GH¢6.24, ranking Unilever Ghana third on the GSE in terms of year-to-date performance.
