Unilever Nigeria records N491.9m loss in Q1

Despite reporting significant increase in revenue, Unilever Nigeria Plc reported in its unaudited first quarter (Q1) ended March 31, 2021 N491.99million loss as against N1.11billion reported in first quarter of 2020.

The multinational company also reported N110.09million loss before tax in Q1 2021 from N948.47million reported in Q1 2020.

Significant increase in cost of sales, finance cost and marketing & administrative expenses can be attributable to losses reported in first quarter results of 2021.

As revenue moved from N13.3billion in Q1 2020 to N19.43billion in Q1 2021, Cost of sales rose significantly by 51 per cent to N14.95billion in Q1 2021 from N9.9billion reported in Q1 2020.

Finance cost closed the period under review at N34.37million from N614,000 in Q1 2020 ,while marketing & administrative expenses grew by 63.3 per cent to N3.8billion in Q1 2021 from N2.33billion reported in Q1 2020.

The Corporate Affairs and Sustainable Business Director, ‘Soromidayo George had stated that last year was a year of significant disruptions and volatilities impacting the operating environment, Unilever Nigeria continues to build its resilience to navigate the impact of headwinds.

She added that the company remains focused on its strategy to deliver sustainable growth both in the medium and long-term riding on the pillars of operational efficiency, cost optimization, purposeful brands and increasing market share across key categories.

“We continue to monitor the business environment and respond appropriately to volatilities in the operating environment as well as disruptions from the COVID-19 pandemic,” she said.