Unilever Nigeria Plc, the owners of Lipton and PG Tips, has sold its tea business to Unilever Tea MSO Nigeria Limited, a subsidiary within the Unilever Group, a move that will affect the earnings of the Nigerian listed entity.
The tea business was sold for a considerable amount .According to a report by Unilever Plc, the tea business generated a profit of N2.72 billion between January to October 2021.
Reports have it that although the tea business is now wholly-owned by Unilever Tea MSO, Unilever Nigeria will assist in the manufacture and sale of the tea products for a fee based on a Transitional Service Agreement.
A statement in its Annual Financials Statement for the 2021 period, released on Monday, April 5, said, “All proceeds from the sale are remitted to Unilever Tea MSO Nigeria Limited, and all costs incurred are charged back to Unilever Tea MSO Nigeria Limited.”
The cessation of the tea business will reduce Unilever Nigeria’s turnover, as the tea business contributed N9.04 billion to the firm’s earnings in the first nine months of 2021.
