Unilever Nigeria Sales Rise, Sales of Tea Business Helps Profit
A healthy sales growth in the financial year 2021 has helped Unilever Nigeria Plc to make an easy return to profitability after a loss-making streak in the past years.
In its unaudited interim financial statement submitted to the Nigerian Exchange, the consumers’ good company sales inched to N70.523 billion, rising more than 35 per cent from N52.211 billion in 2020.
Due to the steep inflation rate recorded in 2021 in Nigeria, the average price of consumers products were adjusted upward as production costs inched higher strongly.
Producers in the fast-moving consumers’ goods industry halted price war while the availability of substitutes remains limited due to Nigeria’s Government of Nigeria border tightening policy.
Due to a relatively increased in business activities level, consumer goods producers cost of sales advanced 22.88% year on year to N50.551 billion from N41.136 billion in the comparable period in 2020.
At N19.972 billion, the company’s gross profit advanced more than 80 per cent in the period as sales growth outpaced increased direct costs of sales recorded.
Amidst a tough operating environment, Unilever Nigeria sees its operating profit rising to N1.665 billion as against N5.856 billion loss recorded last year.
Its audited financial statement for 2021 shows that the consumers’ goods producer records after-tax profit of N3.883 billion, from N1.905 billion loss sustained in 2020.
However, detail from its unaudited account shows that the company annual profit was boosted by a discontinued operation where it realised N2.178 billion in the year.
The numbers reflect the results of the Tea business from the beginning of 2021 to its discontinuation in October 2021, according to the financial statement.
On 1 October 2021, Unilever Nigeria Plc concluded the sale of its Global Tea Business. In line with the Unilever Group’s directive, the Company committed to a plan to sell this business since its announcement on 23 July 2020.
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