Unilever reports N714.78m profit in six months

Unilever Nigeria Plc has maintained its impressive performance, increasing revenue and profits.

The household company in its unaudited interim financial statements for the six months ended June, 30, 2021reported N714.78million profit as against a loss of N519.1million reported in six months ended June 30, 2020.

The company also reported N830.4million profit before tax in the period under review from N566.8million loss before tax recorded in six months of 2020.

About 43 per cent increase in revenue to N39.15billion in six months of 2021 from N27.34billion reported in six months of 2020 contributed to growth in profit.

Also, reduction in its impairment loss on trade and intercompany receivables of N 235million in six months of 2021 from N646.4mllion reported in six months of 2020 also attributable to increase in profit.

From the income statement posted on the Nigerian Exchange Limited (NGX), the company reported 38.2 per cent increase in the cost of sales to N29.3 billion in six months of 2021 from N21.81billion reported in six months of 2020, while total operating expenses rose by 36 per cent to N9.48billion in six months of 2021 from N8.97billion reported in six months of 2020.

Furthermore from income statement, Unilever Nigeria’s operating profit for the period was N422.4 million, 130 per cent increase over N1.41 billion operating loss reported in six months of 2020.

Earnings per share was 12 kobo, 233.3 growth from N0.09 loss reported in six months of 2020.

From balance sheet position, the company reported 5.4 per cent increase in total assets to N96.5billion as of June 30, 2021, from N91.52billion reported in full-year ended December 31, 2020.

Unilever Nigeria in its audited report for the year ended December 31, 2020, reported N3.97billion loss from N7.42billion loss reported in 2019.

The multinational company also reported N4.74billion loss before tax in 2020 from N10.07billion reported in 2019.

The Corporate Affairs and Sustainable Business Director, ‘Soromidayo George, had stated that even though 2020 was a year of significant disruptions and volatilities impacting the operating environment, Unilever Nigeria continues to build its resilience to navigate the impact of headwinds.

Mrs George added that the company remains focused on its strategy to deliver sustainable growth both in the medium and long-term riding on the pillars of operational efficiency, cost optimization, purposeful brands and increasing market share across key categories.

“We continue to monitor the business environment and respond appropriately to volatilities in the operating environment as well as disruptions from the Covid-19 pandemic,” she said.