Unilever Nigeria Grows Profit 425% in 2022
Growing in multiples, Unilever Nigeria Plc posts N5.992 billion as profit after tax at the end of the financial year 2022, from N688.266 million in 2021, according to an audited statement filled with Nigerian Exchange.
The consumer goods producer’s profit before tax spiked by more than 425% in 12-month without any income from discontinued operation, a development that helped its result in the financial year 2021.
Consequently, the consumer goods producer’s earnings per share settled at N1.04 for the period as against 59 kobo reported in 2021 following a well-managed production costs profile.
Sales increased 25.8% in the financial year 2022 as prices of goods were adjusted upward, rising to N88.72 billion from N70.52 billion.
From N50.161 billion in the financial year 2021, Unilever Nigeria’s costs of sales grew N57.238 billion, an increase of 14.10% year on year its audited statement obtained by MarketForces Africa shows.
The strong topline performance provides support for healthy growth in the producer’s gross profit. Its audited result indicates that gross profit jumped by more than 54.6% year on year to N31.48 billion from N20.36 billion recorded in 2021.
The company’s gross margin for the final quarter of 2022 reached its highest point in at least seven years, as it expanded by 26.32 percentage points to 59.7% as against 33.4% recorded at the end of Q4-2021.
Amidst a high inflation rate in its Nigeria market, operating expenses of the company inched higher by more than 25% to N23.08 billion from N18.44 billion in the year 2021 when operations were faced with unpriced uncertainties which brought profit down.
Printed at N1.286 billion in 2022, Unilever Nigeria’s net finance costs spiked by 38.1% amidst a high interest rate environment engineered by the Central Bank of Nigeria’s fast and furious hawkish tone.
Benchmark interest rate was increased by 500 basis points in 2022, from 11.50%, forcing an upward adjustment to banks’ lending rate. Overall, Unilever Nigeria grew profit before tax by more than 425% year on year to N9.86 billion at the end of the financial year 2022, from N1.878 billion in 2021.
On the floor of the Nigerian Exchange, due to higher demand, the company’s share price jumped by 9.9% as value hunters begin to take position over the expected dividend declaration and payment for its upbeat financial performance. #Unilever Nigeria Grows Profit 425% in 2022