Unilever Nigeria posts N1.80bn profit for Q1, 2022

Unilever Nigeria Plc, on Monday released its first quarter Q1 2022 results revealing a profit of N1.80 billion, from a loss of N492 billion in the corresponding period of 2021.

The period under review witnessed a persistent increase in price of goods and services, thereby resulting in inflationary pressure that affected both consumers and producers.               Despite the double-digit food inflation, the Q1 2022 profit was supported by cost management practices as production cost increased by single-digit.

A cursory view of the result shows that the company’s profit was driven by significant sales of the company’s reportable segments, that is, Food and Home and Personal Care products. Both segments delivered a revenue of N20.24 billion in the full year pere compared to N16.51 billion in the same period of 2020.   Revenue growth from the  food product segment was at 26.15 per cent year on year,generating a total of N9.44 billion. While revenue from home and personal care products raked in N11.12 billion representing 23.20 per cent growth year on year.

The company’s revenue is also broken down in to domestic and export sales. Domestic sales raked in N20.24 billion during the period. While exports grew impressively by 229.26 per cent to generate N322 billion.

In addition, the company made N35.91 million as income for Translational Service Agreement (TSA) following the disposal of their Tea business to Unilever Tea MSO Nigeria Limited.            The agreement will last for 15 months, during which time Unilever Nigeria PLC, will give Unilever Tea MSO Nigeria Limited with production and sales support in exchange for a fee.

A further look at the financial results showed that the company’s total assets are now at N116.33 billion, net assets grew 2.73 per cent to N67.56 billion.

Unilever Nigeria PLC, had declared a dividend of N0.50 kobo for Financial year 2021 to be paid on May 6, 2022. While Earnings per share for Q1 2022 is N0.31.

The company last traded at N12.20 per share has declined by 15.86 per cent from year-to-date.