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.

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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.

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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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