NIGERIA – Unilever Nigeria Plc, a major player in the fast-moving consumer goods sector, has disclosed a notable financial performance for the previous year.
According to the company’s latest unaudited financial statement, its revenue witnessed a substantial increase, rising from US$71.10 million in 2022 to US$107.17 million in the past year.
Similarly, after-tax profit surged to US$4.92 million from US$9.39 million, attributed to improved cost margins and an uptick in exports.
Export revenue showed a significant rise, marking a 145.9% increase to US$2.95 million. However, the company reported a loss from discontinued operations amounting to US$4.10 million, up from US$1.64 million in 2022.
Unilever’s decision to exit the homecare and skin cleansing categories in December 2023 contributed to this loss. The company has leased the factory buildings to a third party for 10 years with annual rental payments.
The financial statement revealed that finance income increased to US$18.84 million from US$10.02 million, primarily due to interest on call deposits and bank accounts.
Marketing and administrative expenses were reduced to US$14.66 million from US$15.53 million while selling and distribution costs increased to US$32.86 million from US$28.96 million.
Other income saw a substantial increase to US$1.09 million from US$177,030, driven by promissory notes.
Unilever explained that this included income derived from a discounted promissory note issued by the Federal Government of Nigeria, related to prior-period Export Expansion Grants.
Despite the positive financial results, the net cash flow from operating activities declined to US$2.96 million from US$13.23 million.
Net cash flows from investing activities stood at US$1.36 million, and net cash used in financing activities was US$7.99 million.
The company’s cash and cash equivalents at the end of the period decreased to US$62.27 million from US$72.95 million, primarily due to a reduction in fixed deposits.
Meanwhile, in Germany, Unilever is reportedly planning job cuts, intending to axe more than half of the current 175 jobs at a soup-making facility in Auerbach.
The company is set to close three production lines by October. While Unilever declined to comment directly on the job cuts, it mentioned “strategic changes” aimed at securing the future of the Auerbach site in a dynamic market.
Union representatives in Germany, however, expressed concern, stating their intention to build up massive pressure to prevent downsizing and partial closures.
They argued that the employees, who have been dedicated to the company for decades, should not bear the brunt of profitability-driven decisions.
Unilever’s Auerbach facility produces various foods, including instant soups, ready meals, and croutons, according to the company’s website
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