Unilever records sharp decline for 2009

Accra, July 27, GNA Unilever Ghana recorded a sharp decline in its operation income from GH¢28.5 million in 2008 to GH¢6.5 million in 2009.

This represented a profit margin of 17.2 per cent in 2008 to 3.8 per cent in 2009.

Mr. Charles Cofie, Managing Director of Unilever Ghana, addressing the Annual General Meeting of the company in Accra on Tuesday, attributed the reduction in sales to the credit crunch that hit the world and the subsequent reduction in exports.

In addition, the decline was due to the weak purchasing power of consumers for 2009 due to the slowdown in economic activities.

"Despite these challenges, the board has recommended a payout of a dividend of 0.2128 per share for 2009 which is the same level as 2008", he added.

Mr. Cofie noted that due to the recorded losses for 2009, Unilever had put in internal processes that would enable it achieve good returns in 2010.

He cited strong growth in home products such as Omo, Sunlight, Pepsodent, Lux and Geisha as products that boosted consumers purchasing.

"But intense competition from cheaper artisanal bar soaps impacted negatively on the sale of Key Soap which called for the re-launch of Key Mini", he said.

Mr. Cofie said the company also recorded a profit after tax of GH¢4.2 million in 2009 as against GH¢29.2 million in 2008.

"This was impacted by the lower operating profit and restructuring costs incurred in 2009", he said.

On the company's social responsibilities, he mention a capacity building workshop organised for women in Small and Medium Scale Enterprises at Agona Swedru, excellence awards for best graduating female students in public universities and polytechnics and financial support to the World Food Programme (WFP).

Mr. Ishmael Yamson, Board Chairman of Unilever Ghana, noted that in spite of all the challenges that Unilever faced in 2009, it was able to record a lead in market leadership.

"The challenges of 2009 are not entirely behind us, we are however committed to creating long term sustainable value to our shareholders adding that the company had the right strategies, brands and partners to deliver this year", he added.

In an open forum, the shareholders appealed to the board members to make the products of Unilever available in towns where the oil exploration had taken place and in addition, allow consumers to have a representative on the board.