Unilever Nigeria turns to profitability registering 152% rise in earnings in 9 months

NIGERIA – Leading Nigerian FMCG company, Unilever Nigeria, has recorded 31.3% increase in revenue to N58.72billion (US$143m) for the nine months period ended September 30, 2021, against N44.73billion (US$109.03m) registered in the prior corresponding period.

The revenue growth was driven by increased earnings in its food products category which gained 21.4% in revenue to N30.5billion (US$74.35m) from N25.1billion (US$61.18m) recorded in 2020.

Meanwhile, analysis of its results showed that revenue from Home & Personal Care rose by 44% to N28.3billion (US$68.98m) from N19.6billion (US$47.78m).

The consumer goods company was able to grow revenue domestically across all its categories, as its strategically positioned itself to capture market shares.

During the period under review, cost of sales for the period rose by 23% to N42.9billion (US$104.57m) from N34.85billion (US$84.95m), positioning gross profit at N15.9billion (US$38.76m) a 61% increase from N9.88 billion (US$23.89m) recorded in nine months of 2020.

In the unaudited result, the company’s total operating expenses rose by 28% to N14.98billion (US$36.52m) from N11.7billion (US$28.52m) recorded in nine months of 2020.

The growth in OPEX was driven by 28.8 per cent increase in marketing and administrative expenses to N12.4billion (US$30.23m) in nine months of 2021 from N9.63billion (US$23.47m) in nine months of 2020, while selling and distribution expenses rose by 24 per cent to N2.58billion (US$6.29m) from N2.08billion (US$5.07m) in nine months of 2020.

On finance management, its finance income recorded N133.03million (US$324,000) in nine months of 2021 from N34.64million (US$84,000) in nine months of 2020 to eventually supported growth in profits.

Overall, Unilever Nigeria returned to profitability after a hard 2020 as improved sales helped boost profit.

The Lagos-based company reported a 152% jump in its nine-month profit after tax in 2021 to N1.08 billion (US$3.65m) from a loss of N2.06 billion (US$5.02m) recorded in the corresponding period of 2020.

Unilever Q3 global sales marginally rise amid inflation driven price hikes

Globally, the UK – British multinational consumer goods giant has recorded underlying sales growth of 2.5% in its third-quarter results amid rising material costs and continued impact of covid-19 on sales in various markets.

The owner of Ben & Jerry’s and Magnum ice cream reported turnover of €13.5 billion (US$15.71 billion) in Q3, an increase of 4% on the previous year. 

In Unilever’s third quarter, the company’s foods and refreshment unit expanded its underlying sales by 3% and recorded a turnover of €5.1 billion, ahead of beauty and personal care (up 2.6%) and home care (up 1.4%).

Underlying sales expanded across Unilever’s Asia/AMET/RUB, Americas, and Europe sectors in its third quarter, by 2.3%, 4.4%, and 0.3%.

The Southeast Asian markets however declined in Q3 due to the imposition of Covid-19 restrictions following high case rates.

In Europe, Italy saw growth in part driven by its performance in ice cream after a decline the previous year, while the Netherlands also grew, with foods delivering mid-single-digit growth.

Meanwhile, the Americas saw Mexico and Argentina grow both price and volume. North America saw a decline in volumes in comparison with the high demand for in-home food products the prior year.

In the US, the company’s food solutions and functional nutrition businesses both contributed to growth, while in-home food and ice cream declined.

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