Unilever delivers stellar financial results as revenue soars 51% to N97.4bn

Business a.m

Unilever Nigeria Plc, one of Nigeria’s largest fast-moving consumer goods companies, has announced a turnover of N97.4 billion for the full operational year of 2023, a 51 per cent increase from the N64.6 billion turnover recorded in the corresponding period of 2022.

The impressive financial performance is outlined in Unilever’s unaudited interim report for the twelve months ended December 31, 2023, seen by Business a.m.  The report shows that the company’s growth is sustainable, with a strong balance sheet and a robust cash flow despite the economic challenges encountered in the period under review.

Unilever disclosed that it achieved a gross profit of N29.8 billion for the period ended December 31, 2023, a 13 per cent increase compared to the N26.3 billion recorded in the same period in 2022. The company’s net profit also grew by a staggering 91 per cent to N8.5 billion for the period ended December 31, 2023, compared to N4.5 billion for the same period in 2022.

Unilever’s net profit from ongoing operations, after adjusting for the portfolio changes made during 2023, grew by an impressive 106 per cent to N12.3 billion for the period ended December 31, 2023, compared to N6 billion for the same period in 2022.

Further breakdown of the statement revealed that the company’s export revenue increased significantly, by 145.9 per cent to N2.68 billion. On the other hand, the company reported a loss from discontinued operations of N3.73 billion, up from N1.49 billion in 2022.

The company’s finance income soared by 87.97 per cent, from N9.11 billion in 2022 to N17.13 billion in 2023. Meanwhile, marketing and administrative expenses declined by 6.08 per cent, from N14.12 billion in 2022 to N13.33 billion in 2023.

Despite the positive trends in finance income and marketing and administrative expenses, there were some negative factors. Selling and distribution costs increased, rising from N26.33 billion in 2022 to N29.87 billion in 2023.

Other income increased from N161.85 million to N986.9 million, due primarily to promissory notes, while et cash flow from operating activities decreased from N12.03 billion to N2.69 billion.

Tim Kleinebenne, the managing director of Unilever Nigeria, attributed the positive results to the company’s focus on delivering consistent, profitable, and responsible growth.

“Unilever Nigeria made great progress in 2023 through operational efficiency, cost optimisation, the right portfolio of purposeful brands and increasing market share across key categories.

Unilever Nigeria will continue to strengthen its operations in the country to meet citizen’s needs through our best brands, our people and our operations,” he said.

Kleinebenne noted that Unilever Nigeria, as the country’s oldest manufacturing company, is fully committed to remaining in Nigeria and serving the local market with great, locally-made brands. He added that the company has been operating in Nigeria for 100 years, and is proud to have contributed significantly to the country’s socioeconomic development.