Unilever Ghana Ltd (UGL) declared a loss of GH¢141 million for 2019 as challenges in trading conditions persist.
The company in 2018 recorded a profit after tax of GH¢190825 million.
According to the unaudited statements, " Revenue for the year under review was GH¢339.8 million compared to GH¢632.1 million in 2018. The results reflect challenging trading conditions as well as the prioritization of inventory reduction in our distribution network as highlighted in our disclosure in September 2019.”
The unaudited financials for the year ended 31st December 2019 also revealed revenue of the company plunged by 46% year on year from 2018.
Expenses such as distribution expenses, impairment on trade receivables and finance costs of Unilever also led to a reduction in its profit before taxation for the year under review.
Management, however, is optimistic about the long term outlook of the business.
In September 2019, Unilever Ghana Limited in an email disclosed that “many distributors finding it increasingly difficult trading.”
The email noted the “economic climate in Ghana has seen a slow-down especially in trading conditions particularly after the banking sector reforms which began in Q4 2018.”
Unilever said the subdued consumer demand together with the reforms has seen the company’s distributors posting “unusually high inventory levels.”
The company said it was bracing for a “considerably lower than planned” turnover in its outlook for the rest of 2019.
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