Unilever Nigeria’s Net Profit Hits N714.78m In H1

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(Last Updated On: 2021-07-26)

Unilever Nigeria Plc recorded net profit of N714.78 million in the first half of the year, ended June 30, 2021.

Interim report and accounts of Unilever Nigeria for the six-month period ended June 30, 2021 released at the Nigerian Exchange (NGX) Limited showed that the company’s profit after tax grew to N714.78 billion in H1, 2021 from a loss after tax of N519.11 million in H1, 2020, translating into an earnings per share (EPS) of N0.21 for the period.

Revenue increased by 43.21 per cent from N27.337 billion in the first half of 2020 to N39.150 billion in the first half 2021. Cost of sales rose by 38.22 per cent to N29.276 billion as against N21.181 billion in 2020, while gross profit was up by 60.40 per cent from N6.156 billion to N9.875 billion.

Profit from operating activities stood at N422.44 million while net finance costs declined by 28.31 per cent to N605.20 million, compared to N844.18 million in 2020.

The company’s total shareholders’ equity was up by 1.15 per cent to N62.841 billion higher than N62.129 million recorded in H1, 2020, while total assets for the period was N96.486 billion, as against N91.518 billion in 2020, an increase of 5.43 per cent.

Analysts at Cordros Securities Limited noted: “We like that the company overturned the prior quarter’s loss with a decent top line growth bringing the H1, 2021 EPS to N0.21 amidst the sub-inflationary price increase across its product portfolio.

“In addition, we believe that the company management’s gradual increase in credit sales will remain supportive of volume growth in the near term. As such, we now expect Unilever Nigeria to deliver positive earnings in 2021.”

Unilever Nigeria recently assured shareholders of its efforts to ensure a sustained and steady growth in the company’s operations engineered to achieve better returns on their investments.

Speaking to shareholders recently, the chairman of Unilever Nigeria, Igwe Nnaemeka Achebe, said, “our 2020 results have shown that refocusing the business on the path of competitive growth and driving operational efficiency is an effective strategy. We now have a model that works and can easily be adapted to whatever situation we find ourselves in. Our goal is to remain competitive and sustainable.”

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