Unilever Nigeria Plc (NGX: UNILEVER) has reported a profit of N1.66 billion for the nine months period ended 30 September.
Also read; FG approves establishment of 7 new tertiary institutions
The unaudited interim financial statements for the period analyzed by Investogist shows that company achieved a 579.60% growth in profit.
In March 2023, Unilever announced it’s exiting the Home Care and Skin cleaning businesses to concentrate on higher growth opportunities.
The production for home care category by Unilever ceased in June 2023 and sales ceased in September, 2023. On the other hand, the production and sale for skin cleansing category has been extended to December 2023.
Analysis of Statement of Profit or Loss and Other Comprehensive Income
Revenue: N81.57 billion was reported in 9M 2023, 25.95% growth on the N64.76 billion reported for the same period in 2022.
Food products and Home & Personal Care business segments brought in N43.18bn and N38.39bn respectively.
Unilever spent N62.17bn selling its goods, 30.66% higher than the N47.58bn it spent last year. Of this sum, N52.60bn (9M 2022: N46.66bn) was cost of the goods, while the rest were on revaluation and restructuring.
Gross Profit: The company posted a gross profit of N19.40bn, 12.93% higher than the N17.18bn it posted in the preceding year.
Marketing & Administrative Expenses: N12.31bn was spent in 9M 2023, 7.56% lower than the N13.31bn spent in the preceding year.
Unilever spent N4.97bn on brand and marketing out of the N12.31bn, while N5.82bn was on overheads. Included in overheads is N1.3bn revaluation gains on foreign currency denominated receivables.
Selling & distribution expenses: N3,73bn was spent, against N3.47bn spent in 9M 2022, a 7.72% rise.
Net Finance Income: Unilever earned net finance income of N3.17bn, against a net loss of N70.58mn in preceding year.
While N2.73bn came in a finance income, N448.01mn was booked as finance cost.
Exchange difference on bank accounts resulted in a loss of N2.92bn, against a N479.14mn gain in the preceding year.
Profit before taxation: N4.90bn was reported, 937.42% growth from the N473k reported in preceding year.
Profit for the period: Unilever posted a 579.60% growth in profit, from a loss of N348k to N1.66bn.
Analysis of Statement of Financial Position:
Assets: Unilever’s total assets rose to N135.40 billion, 7.99% higher than N125.38 billion as at December 31, 2022.
Cash and bank balances make up more than half of the company’s total assets, rising to N73.80 billion from N66.31 billion.
Trade and other receivables rose to N24.12 from N21.12 billion as at Dec. 31, 2022.
Liabilities: Total liabilities increased to N67.60 billion from N57.82 billion as at 31 Dec. 2022, a 16.91% increase.
The major component on the company’s liabilities in trade and other payables that stood at N60.68bn.
Equity: The total equity was relatively unchanged at N67.79bn (31 Dec. 2023: N67.56bn).
Share premium represents a bulk of the equity with N56.81bn, while retained earnings accounted for N8.11bn.
Analysis of Statement of Cash Flow
Net cash flow generated from operating activities rose to N6.70 billion, up from N5.95 billion in 9M 2022.
Net cash flow of N1.40bn was generated from investing activities, against N521.71 million generated in 9M 2022..
Net cash used in financing activities was N624.01mn, similar to N632.04mn used in 9M 2023.
At the end of the period, the company has a cash and cash equivalent of N73.80bn (9M 2022: N61.54bn).
About the company
Unilever Nigeria Plc. was established in 1923 as a soap manufacturing company – West Africa Soap Company– by Lord Leverhulme.
It later became known as Lever Brothers Nigeria Plc. Today, it is the longest serving manufacturing organization in Nigeria.
After a series of mergers and acquisitions, the Company diversified into manufacturing and marketing of foods, home care, beauty and personal care products.
These mergers and acquisitions resulted in the absorption of Lipton Nigeria Limited in 1985, Cheesebrough Industries Limited in 1988 and Unilever Nigeria Limited in 1996.
The Company changed its name to Unilever Nigeria Plc. in 2001 in line with the global strategic direction of the business
Unilever Nigeria Plc. is a member of the Unilever Group, one of the world’s leading consumer goods companies.
The Company was quoted on the Nigerian Stock Exchange in 1973.
In October 2021, the company disposed of its tea business, and entered into a Transitional Service Agreement with the new owner, Unilever Tea MSO Nigeria Limited.
Unilever has 5,745,005,417 outstanding ordinary shares, and a market capitalization of N78.13 billion. It’s share price is N13.60.
Unilever Overseas owns 75.96% of the company’s quoted shares, while Stanbic Nominees Limited held 4.39%. The remaining 19.64% is in free float.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
