Unilever Ghana Limited are determined to achieve their long and short term goal for a positive future growth prospects despite the economic recession climate that negatively impacts the company’s growth and profitability.
The company is hopeful that its stock management and other policies put in place by management would help to improve performance in the future for more profits.
Managing Director for Unilever Ghana Limited, Mr. George Owusu-Ansah, revealed this to the media after the company held its virtual annual general meeting.
Mr Owusu-Ansah explained that, the cash situation reflects the reduced sales level for the period.
He also said that, the company will continue to work with it 33 key distributors and 26 key account partners to deepen the distribution, availability and visibility of brands in relevant stores nationwide.
“In 2019, we expanded our coverage by establishment of 100 sub distributors in the rural and semi-urban areas in Ghana. This added 20,000 stores covered indirectly to our previous directly covered store universe of 62,000. In doing this, we empowered about 100 local entrepreneurs and provided job opportunities for 150 Ghanaian youth, he said.
He added that, the company would have to strengthen their route to the market and continue with their women empowerment programme post COVID-19
“He said they will strengthen their route-to-market and continue our women empowerment programme this year.”
Mr Owusu-Ansah opined, the Beauty & Personal Care category of Unilever Ghana maintained its market leadership despite increased competition in the Skin Cleansing and Deodorants sub-categories.
He however stated that, inflationary pressures and the financial sector clean-up had an impact on the purchasing power of most consumers adding that this resulted in consumers switching to cheaper alternatives.
“In response to this, we successfully rolled-out and distributed a new portfolio of affordable GH¢ 1 priced products across our Champion Carbolic, Pepsodent, Geisha and Lifebuoy brands, he said.
Unilever’s financial results for last year shows a revenue drop of 47 per cent from GH¢632m in 2018 to GH¢333m in 2019.
Loss after tax was GH¢ 160m in 2019 vs profit of GH¢ 191m. Cash Flow: Cash and cash equivalent improved marginally from a deficit of GH¢65m in 2018 to a deficit of GH¢ 53m.
The results reflect difficult trading conditions in 2019 as well as a decision to slow down on sales in order to reset the levels of stock in trade. Operating loss for the period was GH¢205m compared with GH¢253m profit in 2018, the managing director said.
Paa Kweku Eshun|Talksafrica.com