Unilever Nigeria records slight growth in revenue to N61.572 billion in 2020

Unilever Nigeria Plc has released its unaudited interim financial statements for the year ended 31 December 2020 with a slight growth in revenue to N61.572 billion from N60.758 billion in 2019.

The company’s loss for the period was cut by 62.31% to N1.592 billion from N4.224 billion losses in 2019.

Revenue grew by 1.3% to N61.6bn from N60.8bn in the previous quarter. Loss before tax stood at N2bn. Loss after tax stood at N1.6bn. Net Assets declined by -2.4% from N66.5bn to N64.9bn.

Unilever Nigeria Plc manufactures and markets consumer products primarily in the home, personal care and foods categories. The Company sells products such as Omo washing powder, Key soap, Royco bouillon, Lipton tea, Blue Band margarine, Pears baby care goods, Vaseline petroleum jelly, Lux soap, and Close Up toothpaste.

The result for the three months ended 31 December 2020 contributed to the loss reduction as it recorded a profit of N468.498 million as against N4.764 billion losses in Q4 2019. Revenue for three months ended 31 December 2020 rose to N16.840 billion from N9.130 billion in 2019.

Doyen of the Nigerian Stockbrokers and Chief Dealer/COO, at Hedge Securities & Investment Co. Ltd, Mr Sam Ndata, expressed concern over the gloomy outlook of the economy occasioned by the Covid-19 pandemic and the 15-month border closure.

He said: “Unilever should put necessary measures in place to ensure it weathers the storm as the operating environment assumes a more challenging outlook”.

Ndata also added that “it requires innovation for companies to sail through the prevailing economic headwind”.

National President, Trusted Shareholders Association of Nigeria, Mukhtar Mukhtar, described the development as “a good omen”.

“By reducing the loss from N4.22 to N1.59 billion, Unilever has demonstrated excellent corporate governance and sound management initiative to make investors optimistic about receiving dividend soon.

“Manufacturing requires the ability to turn things around; what has happened in the case of Unilever is a good omen, considering what these companies suffered during the lockdown and the border closure by the Nigerian government.

“Unilever has shown the ability to play an active role in the AfCFTA that has commenced across the continent by reducing its loss, no matter the amount, and that means the company is moving in the right direction”.

Mrs. Bisi Bakare, National Co-ordinator, Pragmatic Shareholders’ Association of Nigeria, urged Unilever and other companies to institute efficient, cost-reducing measures to enable the company to survive the difficult operating environment.

According to her, “directors and management should be ready to make the required sacrifice at this time as shareholders experience ‘dividend draught’ at this time”.

Unilever pledged to support the Nigerian government in curbing the impact of Covid-19 on the citizens and the general business environment while taking measures to protect the health of its workers and other stakeholders.

“COVID-19 is an evolving situation; the company is monitoring closely any material impact to the going concern of the business.

“Our priority is to protect the health, safety and welfare of our employees, customers, and partners, as well as support the Government and its agencies as they work to reduce the impact of the outbreak,” the company noted.


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