Unilever Nigeria Plc posted a record profit in 2025, benefiting from a firmer naira and easing inflation that helped stabilise costs and support consumer demand, reflecting a turnaround for consumer goods makers after two bruising years of currency shocks and runaway prices.
The Lagos-based unit of Unilever Plc reported profit of N30.7 billion for the year ended December 31, more than double the N15.1 billion recorded in 2024, according to unaudited full-year results filed with the Nigerian Exchange. Earnings per share rose to N5.35 from N2.64, the highest in the company’s recent history.
Revenue climbed 44 percent to N214.7 billion, reflecting price increases implemented earlier in the year as well as steadier demand in the second half, when inflation began to cool and the naira strengthened from its record lows.
Nigeria’s inflation rate, which peaked above 30 percent in early 2024, eased gradually through 2025, while the local currency found relative stability following foreign-exchange reforms and improved dollar liquidity.
Those macro shifts offered some relief to consumer goods companies heavily exposed to imported raw materials. Unilever Nigeria’s cost of sales still rose sharply to N125.0 billion from N94.4 billion, but gross profit jumped 63 percent to N89.6 billion, indicating improved pricing power and margin recovery as exchange-rate pressures moderated.
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Operating profit surged to N42.7 billion from N18.4 billion a year earlier. The improvement was supported by stronger gross margins, higher other income, and a net write-back on receivables, even as marketing and administrative expenses rose to N42.4 billion, reflecting lingering inflationary pressure on wages, logistics, and distribution.
Finance income provided a further lift. Income from cash and short-term investments rose to N10.3 billion from N6.8 billion, benefiting from elevated interest rates and a much larger cash pile. Cash and cash equivalents stood at N110.4 billion at the end of December, up from N68.4 billion in 2024, leaving the company in a strong net cash position despite Nigeria’s high-rate environment.
The stronger earnings momentum was partly offset by a steep rise in tax expense, which climbed to N21.1 billion from N7.5 billion, reflecting higher profitability and changes in effective tax charges.
Unilever Nigeria’s balance sheet expanded alongside earnings. Total assets increased to 178.9 billion from N141.6 billion, driven by higher cash balances and increased investment in property, plant, and equipment. Inventories fell to N22.9 billion from N30.8 billion, suggesting tighter working-capital management as consumption patterns remained cautious.
Total liabilities rose to N72.9 billion from N56.5 billion, largely on higher trade payables and deferred tax liabilities, but shareholders’ equity strengthened to N106.0 billion, supported by retained earnings of N46.3 billion.
The results highlight how easing inflation and a firmer naira are beginning to reshape the outlook for Nigeria’s consumer goods sector after a period marked by margin erosion and weak demand.
Tobi Adeniyi, the company’s managing director, attributed the significant growth in earnings to the firm’s continued momentum from its route‑to‑market expansion, well-optimised operational structure, and the robust demand across its product line.
“With a proud heritage of more than 100 years of manufacturing in Nigeria, every product and every experience reflects our legacy of innovation and our unwavering commitment to quality. Through our trusted brands, we continue to Brighten Everyday Life for All,” Adeniyi said.