Unilever’s 9-Month Revenue Soars by 26% to N81.57bn

Unilever Nigeria Plc, a prominent consumer goods manufacturer, reported substantial growth in its financial performance for the period ending September 30, 2023.

According to the unaudited interim financial statements released on Friday and filed with the Nigerian Exchange Limited, the company achieved a remarkable increase in its revenue, marking a significant upswing of 25.95 percent. Unilever Nigeria’s revenue surged from N64.768 billion recorded within the corresponding period in 2022 to an impressive N81.576 billion in 2023.

This substantial revenue growth reflects the company’s continued commitment to delivering value to its stakeholders and serving the evolving needs of its consumer base.

The remarkable financial performance extended beyond revenue growth, as the company also managed to achieve a notable profit transformation. In the nine-month period ending September 30, 2023, Unilever Nigeria reported a profit of N1.669 billion, a significant turnaround from the N348 million loss reported during the same period in 2022. This remarkable shift towards profitability can be attributed to an increase in net finance income, which rose to N3.179 billion from a loss of N70 million in 2022. Unilever Nigeria’s ability to transition from a loss to a substantial profit in this time frame underscores its resilience and strategic financial management.

During the third quarter of 2023, Unilever Nigeria further showcased its financial recovery, moderating its losses by an impressive 51.60 percent. The company reported a loss of N1.091 billion in Q3 2023, a significant improvement from the N2.254 billion loss incurred during the same period in 2022. This substantial reduction in losses was complemented by a robust increase in revenue for the quarter. Unilever Nigeria’s revenue for the third quarter of 2023 surged by 30.57 percent, reaching N27.371 billion, compared to N20.962 billion in the same period in 2022. This strong revenue growth is indicative of the company’s ability to adapt to changing market dynamics and consumer preferences.

However, it is important to note that Unilever Nigeria faced certain financial challenges during the third quarter of 2023. Notably, finance costs rose significantly, increasing by 215 percent to N1.034 billion from N328 million in the third quarter of 2022. This increase in finance costs had a notable impact on the company’s financial performance during the period. Furthermore, the company faced a tax expense of N1.481 billion, which further contributed to the downward trend in its financial results for the quarter.

Unilever Nigeria Plc made significant strategic decisions earlier in the year, which had a direct impact on its financial performance. On March 17, the company announced its intention to exit the home care and skin cleansing category. As part of this decision, Unilever Nigeria ceased production for the home care category in June, and sales of these products were discontinued in September. The production and sale of products in the skin cleansing category were extended until December 2023. This move was driven by the company’s commitment to evolving its business model, accelerating growth, and better serving the needs of consumers, shareholders, and employees.

The affected products that were discontinued in the home care and skin cleansing categories include well-known brands such as Vaseline, Omo, Lux, Dove, Lifebuoy, and Rexona. Unilever Nigeria’s strategic shift away from these categories was explained as part of an effort to repurpose its portfolio, concentrating on higher growth opportunities, simplifying and digitizing processes, and enhancing business continuity measures. By implementing these changes, the company aims to reduce its exposure to devaluation and currency liquidity in its business model, thus achieving a more sustainable and robust operational framework.

The decision to exit the home care and skin cleansing categories in 2023 was anticipated to yield positive outcomes for Unilever Nigeria. The company projected that this strategic move would result in an overall improvement in profitability and growth. By focusing on high-growth areas and streamlining its operations, Unilever Nigeria aimed to create a more sustainable and resilient business model that aligns with the dynamic and evolving landscape of the consumer goods industry.

In summary, Unilever Nigeria Plc’s financial performance for the period ending September 30, 2023, reflects a robust growth trajectory. The company’s impressive revenue growth, coupled with its transition from a loss to a profit, underscores its resilience and ability to adapt to changing market dynamics. While it faced certain financial challenges during the third quarter, Unilever Nigeria’s strategic decisions, such as exiting the home care and skin cleansing categories, indicate a forward-looking approach to business development. These strategic changes are expected to result in improved profitability and long-term sustainability for the company.