Unilever Ends Production of OMO, Sunlight and LUX in Nigeria

Unilever Nigeria Plc has officially exited the home care business, ceasing production of its iconic laundry detergent brands Omo, Lux and Sunlight. The news, confirmed in the company's unaudited interim financial statements for the year ended December 31, 2023, marks the end of an era for these household names, deeply ingrained in Nigerian homes for generations.

The decision comes ten months after the company announced changes to its operations which was majorly caused by declining revenue and increasing losses in the home care segment.

The two affected categories which form the nub of the company’s home and personal care division accounted for the lion’s share of the company’s revenues and profit before tax (PBT) in the last two years.

"These categories are margin dilutive and the exit is part of the company’s aim to make its operation in Nigeria competitive and profitable," the document added.

Despite their popularity, Omo, Lux and Sunlight faced stiff competition from local and international brands, coupled with economic challenges in the country.

The company also cited in the report that "the factory used to produce the home care and skin cleansing products has been leased out to a third party for a duration of 10 years, with annual rental payment."

Unilever's exit from the home care business is a significant pivot for the company, focusing its resources on its remaining segments: foods, beauty and wellbeing, and personal care. The coming months will be crucial in determining how this shift reshapes the laundry landscape and the choices available to Nigerian consumers.