Unilever Nigeria records pre-tax profit of N6.28bn in H1 2024
By Ralph Tathagata
Unilever Nigeria Plc has recorded a pre-tax profit of N6.3 billion its first half of 2024. The latest report marks a 7% year-on-year growth from the consumer giant’s N5.9 billion posted in H1 2023.
Also, in the 2024 half year report, the company posted a revaluation gain of N2.5 billion on its imported goods, reflecting a contrast from H1 2023, when it posted a revaluation loss of N14.4 billion.
In its unaudited interim financial statement for H1 2024, Unilever Nigeria posted a revenue of N63.9 billion, which is a 41% year-on-year growth from the N45.4 billion revenue posted in the corresponding period last year.
The consumer goods giant posted a N4.4 billion profit for the period, representing a 61% YoY growth from the N2.8 billion posted in H1 2023.
What’s more, a N37.1 billion revenue was recorded from the company’s food products, namely Lipton Yellow Label Tea, Knorr and Royco cubes during the period under review, while exporting consumer goods worth about N2 billion.
The report further revealed that Unilever Nigeria sold goods worth N1.96 billion to Unilever Cote D’Ivoire, as its receivables from the company increased to N7.2 billion, from N4.38 billion as of FYE 2023.
It also recorded N22.2 billion from its personal care products, and it recorded N4.6 billion from its beauty and wellbeing products. Unilever Nigeria’s personal care products include Close-Up toothpaste, Pepsodent toothpaste, LUX beauty soap, Lifebuoy soap, Rexona, Vaseline lotion and Vaseline Petroleum Jelly.
The report stated that the marketing and administrative expenses of Unilever Nigeria appreciated by 163% YoY to hit N17 billion in H1 2024 from N6.5 billion as of H1 2023. The rise in marketing expenses, according to the report, can be attributed to a 249% surge in overhead costs, primarily driven by the devaluation of the naira affecting foreign-denominated balances as well as inflation.
The company accrued N3.29 billion as income from the exchange difference on bank balances. Also, the company’s deposit for imports rose by 297% year-on-year to N5.97 billion, due to the devaluation of the Naira.
Unilever Nigeria’s trade payables increased to N23.6 billion during the period, marking a 96% YoY increase from N12 billion as of H1 2023. The company’s liabilities linked to its trade finance facility have declined by 76% YoY to N485 million, from N2 billion as of H1 2023.
The decline in Unilever’s trade finance liabilities is linked to the company’s overall decline in its FX-exposed liabilities.
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