Unilever Nigeria Records N1.1Billion in First Half of 2016

Unilever Nigeria Plc monday announced its financial results for the half year ended June 30, 2016, showing profit after tax (PAT) of N1.094 billion.

According to the unaudited results, Unilever posted a revenue of N32.272 billion in 2016, up from N28.721 billion in the corresponding period of 2015.

An analysis of the results indicated that cost of sales increased by 16 per cent from N18.972 billion to N21.924 billion. Gross profit stood at N10.353 billion, compared with N9.75 billion in 2015. Selling and distribution expenses went up from N1.274 billion to N1.50 billion, while marketing and administrative expenses fell from N6.979 billion to N6.689 billion in 2015. As a result operating profit improved from N1.567 billion to N2.161 billion in 2015.

Net finance cost reduced by 54 per cent from N1.47 billion to N670 million in 2015. Consequently, profit before tax jumped from N94 million to N1.487 billion, while PAT soared to N1.094 billion in 2016, from N86 million in 2015.

The company explained that the consistency in performance over the last two quarters demonstrates its strong resilience in a challenging operating environment.

It said in a statement that trading conditions remained difficult in the second quarter of 2016 with prevailing tight consumer wallets and rising costs.

“However, Unilever Nigeria has continued to optimize its planning capabilities and demonstrate resilience in navigating the difficult operating terrain. H1 performance has been delivered in the midst of multiple challenges including foreign exchange devaluation amongst others,” it said.
Unilever assured shareholders of continued focus on key business drivers to ensure sustained growth in the company’s operations to improve returns on shareholder investments.

“Although the challenges in the operating environment are yet to abate, we have continued to see sustained momentum behind recent cost and operating efficiency initiatives taken by Management. We remain focused on driving cost & operating efficiencies, growing market share across key categories and reinvesting behind our core brands,” the company said.

Unilever paid a dividend of N189.2 million that translated to five kobo per share for the 2015 financial year. The Chairman of the company, who is also the Obi of Onitsha, Nnaemeka Achebe, had told shareholders at the annual general meeting in May that the company had once again demonstrated business resilience under very difficult circumstances.