Unilever to focus on boosting exports to the sub-region

Accra, March 20, GNA - Unilever Ghana Limited, producers of home, foods and personal care products, says it would continue to focus on reshaping its portfolio mix, boost exports and cut out unproductive cost in order to remain top of the competition. Speaking on the company's performance in 2007 at the 'facts behind the figures programme' on the Ghana Stock Exchange, Mr. Charles Cofie, Chief Executive Officer of Unilever, said the company would maintain its growth momentum despite pressures of low cost competition, price cutting and counterfeits.

"The company's drive is to further align its business process to reduce duplication and to tap into the opportunities in the country and the sub-regional markets," he said.

In this direction, the company has been making steady investment in machinery and equipment over the last seven years. However, Mr. Cofie said rising cost of crude palm oil, the company's key raw material, remained a major challenge. Palm oil prices rose from 580 dollars per tonne to the current price of 1,023 dollars per tonne fuelled by demands in China and the need for bio-fuels around the world, sparking fears of further hike prices of the commodity in the future.

While Unilever has substantial stakes in Benso and Twifo Oil Palm Plantations, Mr. Cofie said the company still had to import palm oil because of unpredictable rainfall patterns. In spite of the increasing cost of palm oil, the company has managed to keep the price of its products low through innovation and cost saving measures.

On counterfeits products on the market, Mr Cofie said the menace could be dealt with through effective partnership among stakeholders. He said it was important that institutions, which monitor must be resourced and educated on the need for a fair trade and leveled playing field for all.

The company's operating profit grew by 37.4 per cent from 13.2 million GH cedis in 2006 to 18.2 million GH cedis last year. Exports to the Gambia, Liberia and Sierra Leone contributed 20.8 per cent to the company's growth.