Unilever posts N4.9bn profit

Unilever Nigeria Plc has announced a decline in its quarterly profit for the fourth quarter of 2024, reporting a profit of N4.9bn, a 29 per cent drop from N6.87bn recorded in the same period in 2023.

In its financial statement filed on the Nigeria Exchange Limited on Wednesday, the company’s revenue for the quarter ended 31 December 2024 surged by 50 per cent to N45.9bn, compared to N30.5bn in Q4 2023.

However, this growth was overshadowed by an increase in the cost of sales, which rose by 38 per cent to N33bn from N23.96bn in the corresponding quarter of 2023.

Despite the increase in revenue, Unilever’s gross profit stood at N12.9bn, reflecting a 96 per cent increase from N6.59bn in Q4 2023.

The company’s operating profit for the quarter amounted to N7.48bn, which represents a 42 per cent decrease from N12.85bn in Q4 2023.

Unilever’s selling and distribution expenses rose by 22 per cent, from N1.36bn in Q4 2023 to N1.66bn in the fourth quarter of 2024, as it ramped up marketing activities to strengthen its market position.

Meanwhile, marketing and administrative expenses surged by over 278 per cent, from N1.22bn in Q4 2023 to N4.61bn in Q4 2024.

Despite the increase in costs, Unilever reported an impairment write-back on trade and other receivables amounting to N717.25m, up from N5.51bn in Q4 2023.

Unilever’s net finance income showed a remarkable turnaround, with the company recording N302.5m in Q4 2024, compared to a net finance loss of N2.62bn in the previous year.

Finance income stood at N390.7m in Q4 2024, down from N1.33bn in Q4 2023, while finance costs dropped by 98 per cent from N3.96bn to N88.2m.

Profit before tax for the quarter amounted to N7.78bn, a 24 per cent decline from N10.23bn in Q4 2023.

The company’s taxation expense stood at N2.88bn, up from N1.9bn in Q4 2023, reflecting the higher tax burden resulting from increased revenue despite the drop in profits.

Unilever reported a loss of N1.46bn from discontinued operations in the fourth quarter of 2023. However, there were no such losses recorded in Q4 2024, contributing to the overall profitability of the company for the period.

Unilever’s earnings per share for continuing operations stood at N0.85 for the quarter, down from N1.20 in the same quarter in 2023. This represents a decrease of 29 per cent, in line with the company’s profit performance for the quarter.

It also recorded a negative other comprehensive income of N270.21m in Q4 2024, compared to a loss of N222.05m in Q4 2023. The increase in the loss was driven by the remeasurement of post-employment benefit obligations, which led to a negative impact on the company’s total comprehensive income for the quarter.

The total comprehensive income for the quarter was N4.63bn, down 30 per cent from N6.65bn in Q4 2023.

The PUNCH reported that Unilever Nigeria Plc has recorded a turnover of N103.8 bn, representing a 46 per cent increase compared to the N71.2 bn turnover recorded in the corresponding period in 2023.