Unilever Posts N49bn Turnover, N1.56bn Profit After Tax
By Goddy Egene
Unilever Nigeria Plc has reported improved performance for the nine months ended September 30, 2016 despite the challenging period. The company recorded a turnover and profit after tax of N49.87 billion and N1.56 billion respectively with improvements acrossboardagainstprioryear. Consistent improvements in performance over the last four quarters demonstrate the company’s continued
resilience under tough operating conditions.
Specifically, Unilever posted a turnover of N49.871 billion, up from N42.699 billion in 2015. Cost of sales increased by 26.4 per cent to N35.17 billion for the period ended 30th September 2016 from N27.8 billion recorded in the corresponding period in 2015 However, there was 11.7 per cent reduction in marketing and administration expenses from N10.6 billion in 2015 to N9.3 billion for the
corresponding period in 2016. The results include the impact of devaluation of the Naira
Similarly, net finance costs reduced by 26 per cent to N1.6 billion for the nine months ended September 30, 2016 compared to N2.1 billion reported for the corresponding period in 2015. The results show that net finance cost as afunctionofoperatingprofit improved significantly to 51 per cent, compared with 92 per cent in 2015, reflecting improvements in cash management.
Profit before tax jumped to N1.50 billion, from N201 million in 2015, while profit after tax soared from N141 million to N1.567 billion in 2016.
Commenting on the results, Unilever said: ”The operating environment appeared even more turbulent as trading conditions remained difficult in the third quarter of 2016 amidstrisingcosts,increasein interest rates, foreign exchange illiquidity and pressure on consumers’ disposable income. However, we have
continued to navigate the challenging operating terrain through dynamic planning and optimisation of resources.”
Before now, Unilever had assured shareholders of continued focus on key business drivers to ensure sustained growth in the company’s operations to improve returns on shareholder investments.
“Althoughthechallengesin the operating environment are yet to abate, we have continued to see sustained momentum behind recent cost and
operating efficiency initiatives taken by management. We remain focused on driving cost & operating efficiencies, growing market share across key categories and reinvesting behind our core brands,” the company had said.
Based on the nine months results, some market operators said shareholders should expect higherdividendattheendof 2016 year. Unilever had paid a dividend of N189.2 million that translated to five kobo per share for the 2015 financial year.