Unilever Nigeria Records Impressive 26% Revenue Growth in Nine Months

Unilever Nigeria Plc, a leading consumer goods manufacturer, has shown remarkable financial performance, recording a 26% increase in revenue for the nine months ending on September 30, 2023. This growth is a significant achievement for the company, as it reflects its commitment to providing quality products and adapting to changing market dynamics.

The unaudited interim financial statements for the nine months ending on September 30, 2023, were filed with the Nigerian Exchange Limited on Friday, revealing the impressive results.

Revenue Soars to N81.576 Billion

Unilever Nigeria’s revenue for the nine-month period reached N81.576 billion, marking a substantial 25.95% increase compared to the N64.768 billion reported for the same period in 2022. This surge in revenue indicates a growing demand for Unilever’s products and demonstrates the company’s ability to meet the needs of its consumers effectively.

Profit Turnaround

In addition to the remarkable revenue growth, Unilever Nigeria achieved a significant turnaround in its profitability. The company reported a profit of N1.669 billion for the nine months ending on September 30, 2023. This is a remarkable improvement compared to the loss of N348 million reported for the same period in 2022. The profitability turnaround underscores the company’s resilience and efficient financial management.

The increase in profitability was primarily driven by a substantial improvement in the company’s net finance income, which surged to N3.179 billion from a loss of N70 million in 2022. This positive financial performance reflects Unilever Nigeria’s ability to navigate economic challenges effectively and maximize its financial resources.

Q3 Performance Highlights

For the third quarter of 2023, Unilever Nigeria demonstrated a notable moderation in its losses, with a 51.60% reduction. The company reported a loss of N1.091 billion for the third quarter, a significant improvement from the N2.254 billion loss recorded during the same period in 2022.

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During this quarter, Unilever Nigeria also achieved impressive revenue growth, with a 30.57% increase compared to the third quarter of 2022. The company reported a revenue of N27.371 billion for the three months, surpassing the N20.962 billion reported in the same period the previous year.

Challenges in Q3

While Unilever Nigeria’s financial performance in the third quarter showed improvement, it faced challenges, primarily related to finance costs. Finance costs rose significantly by 215%, reaching N1.034 billion, compared to N328 million in the third quarter of 2022. These costs contributed to the company’s losses during the quarter, further impacted by a tax of N1.481 billion.

Strategic Business Transformation

Unilever Nigeria’s impressive financial results in 2023 come amidst strategic changes in its business model. In March 2023, the company announced plans to exit the home care and skin cleansing category. The discontinuation of these product categories is part of Unilever Nigeria’s efforts to accelerate growth and better serve its consumers, shareholders, and employees.

The production for the home care category ceased in June, and sales ended in September. Meanwhile, the production and sale of products in the skin cleansing category have been extended to December 2023. Affected products include well-known brands such as Vaseline, Omo, Lux, Dove, Lifebuoy, and Rexona.

Unilever Nigeria’s decision to exit these two categories is aligned with its strategy to repurpose its portfolio and focus on higher-growth opportunities. The company also aims to strengthen its business operations by implementing digital solutions and simplifying processes. Additionally, it is prioritizing business continuity measures to reduce exposure to currency devaluation and liquidity challenges in its business model.

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The company anticipates that its exit from the home care and skin cleansing categories in 2023 will result in overall improvements in profitability, sustained growth, and a more resilient and sustainable business.

Unilever Nigeria’s remarkable financial performance and strategic initiatives highlight its commitment to innovation, growth, and delivering value to its stakeholders. The company’s ability to adapt to changing market dynamics and drive positive financial outcomes positions it as a leading player in the consumer goods industry in Nigeria.

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