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Business News of Monday, 25 April 2022

Source: nairametrics.com

Unilever Nigeria Plc posts profit of N1.80 billion for Q1 2022

Unilever Nigeria Plc Unilever Nigeria Plc

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

The period in review witnessed a persistent increase in prices of goods and services, thereby resulting in inflationary pressures that affected both consumers and producers.

Despite the double-digit food inflation, the Q1 2022 profit was supported by cost management practices as production costs 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 period compared to N16.51 billion in the same period of 2020.

Revenue growth from the Food Product segment was at 26.15% 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% growth Y-o-Y.

The company’s revenue is also broken down into Domestic and Export sales. Domestic sales raked in N20.24 billion during the period, while exports grew impressively by 229.26% to generate N322 million.

In addition, the company also made money from interest on deposits and bank accounts.

Also, the company made N35.91 million as income from a Transitional 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 Nig Plc will give Unilever Tea MSO Nigeria Limited with production and sales support in exchange for a fee.

The company’s marketing and distribution expenses increased by roughly 9%, during the period.

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% to N67.56 billion.
Unilever Nigeria Plc had declared a dividend of N0.50 kobo for FY 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 and has declined by 15.86% from year-to-date. Subscribe to the Nairametrics Stock Select Newsletter to access our stock pick.