Unilever Nigeria Plc has announced N3.7 billion profit representing 236 per cent increase in in the unaudited Interim financial statements for the half year (H1) ended June 30, 2017.
The Multinational company recorded N1.09 billion in H1 2016 while revenue for the period was N45billion, an increase of about 40 per cent from N32.3 billion reported last year
The Company’s results period shows sustained growth and resilience despite the depressed economic conditions.
The cost of sales reflects an exchange revaluation loss of N31.2billion in H1 2017, 42.3 per cent increase over N21.9 billion recorded in H1 2016 to leverage N13.9 billion in gross profit in H1 2017 as against N21.9 billion in H1 2016.
Hitherto, the company in a statement had assured shareholders of its efforts to ensure a sustained and steady growth in the company’s operations to achieve better returns on their investments.
“Although Unilever Nigeria has not been insulated from the tough economic environment, we have remained focused on our short and long term growth ambitions with clear emphasis on operational intensity, cost efficiencies and growing market share across key categories,” the statement added.
The Company recorded a significant leap in profit from its 2015 position of N1.19billion to close 2016 profit of N3.07billion.
The Company’s 2016 result shows a 17.8 per cent increase in revenue from N59billion in 2015 to N69billion in 2016. A significant portion of this growth is from volume increase.
Cost of sales increased by 29.6per cent from N38billion for the period ended 2015 to N49billion in2016 reflecting rising costs particularly raw material costs that are significantly exposed to foreign currency volatility.
The cost of sales reflects an exchange revaluation loss of N1.7billion in2016.
Marketing and administrative expenses reduced by 16 per cent from N13.1billion in 2015 to N11.6billion in 2016 while other income grew by 60 per cent to N124million from N77.5million in 2015.