2023 Report: Unilever Records 151% Profit Increase, As Suspended Home Care Unit, Rakes In N10.5 Billion

Unilever Nigeria has reported a pre-tax profit of N21.9 billion, representing a 151% increase for the year ended 31 December 2023. This is from the N8.7 billion posted in 2022.

According to Unilever’s audited financial statements for 2023, the company recorded revenue of N103.9 billion, representing a 51.3% increase from the N68.6 billion posted in 2022.

The company’s financial statement shows that the profit after tax in 2023 was put at N16.4 billion, marking a 205% increase from the N5.4 billion posted in 2022.

However, with the discontinuation of certain operations, the company incurred a loss of N8.0 billion, thus taking its net profit for the year to N8.4 billion.

During the year, the group’s nutrition products generated N63.3 billion in revenue, while personal care products generated N33.1 billion in revenue. The group’s discontinued home care operations generated N10.5 billion in revenue in 2023.

The company’s key highlights for 2023 vs 2022 full year (FY) are:

Revenue-N103.9 billion, +51.3% YoY, while the cost of sales-N67.9 billion, +61.4% YoY.
Also, gross profit increased to N36.0 billion, +35.4% YoY, while Selling and distribution expenses were N4.1 billion, +42.3% YoY.

The Marketing and administrative expenses were N16.0 billion, +7.5% YoY, while the Operating profit was N20.3 billion, +139.8% YoY.

Profit before taxation- N21.9 billion, +151.0% YoY, while Profit for the year was N8.4 billion, +88.9% YoY.

Earnings per share were N2.86, +204.3% YoY while Total assets were N116.3 billion, -7.2% YoY.

Recall that in March 2023, Unilever announced the cessation of its home care business category, essentially ending its production of Omo and Sunlight detergents, as well as Lux soaps.

The cessation of this business category accounted for discontinued operations and assets held for sale in the company’s audited financial statements.

Unilever’s discontinuation of these operations led to a 7.2% decline in the company’s total assets, as the value of its property, plant and equipment declined to N18.8 billion in 2023 from N21.5 billion in 2022. In 2023, the company accrued a relatively low foreign exchange loss of N223 million, as the group’s foreign currency exposures were quite reduced.

The company is proposing a final dividend of 75 kobo per share for 2023, representing a 200% increase from the 25 kobo per share paid for 2022.