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Unilever Nigeria Plc delivered a robust first-quarter performance in 2025, doubling its profit after tax to N5.55 billion from N3.36 billion in the same period of 2024, signaling a strong comeback powered by improved cost control, higher revenue, and disciplined capital management.
The company’s revenue grew 45 percent year-on-year to N46.98 billion, up from N32.32 billion in Q1 2024, driven by strong sales across all three of its core segments—food products, personal care, and beauty & wellbeing.
Food products, in particular, led the charge with N27.5 billion in revenue, contributing nearly 59 percent to the top line. This growth demonstrates a successful pricing and volume strategy, especially in a volatile consumer goods market.
Gross profit rose by 40 percent to N18.85 billion, while operating profit more than doubled to N8.27 billion. Net finance income surged to N2.48 billion, a significant leap from N516 million a year earlier.
This improvement was helped by a sharp drop in finance costs—down 88 percent to N172 million—as the company paid off more expensive borrowings and reduced trade finance exposure. Meanwhile, finance income increased due to stronger interest earnings from fixed deposits and favorable foreign exchange movement on bank balances.
Despite a 418 percent rise in tax charges to N5.2 billion, Unilever still posted a stronger net profit. The company’s effective tax rate climbed in part due to higher earnings, but it reflects a return to stronger taxable positions after prior-year losses and restructuring.
Read also: Unilever Nigeria Grows Profit by 65% in Q1 2025, delivers 45% Revenue Growth
Perhaps more telling for investors is the balance sheet strength. Unilever’s cash and cash equivalents swelled to N79.78 billion—an increase of over N11 billion since December 2024—driven by net cash inflows from operating activities, which turned positive at N9.56 billion compared to an outflow of N16.73 billion a year earlier. This dramatic swing in cash generation is a direct result of improved working capital management and profitability.
Shareholders also saw equity rise to N90.66 billion in Q1 2025, up from N85.11 billion at the end of 2024, with retained earnings growing by over N5.5 billion in just three months. There was no dividend declared in the quarter, suggesting the company is focused on consolidation and reinvestment following its strategic restructuring and exit from the Home Care segment in prior years.
Operationally, Unilever appears to be leaning into efficiencies. Cost of sales increased due to raw material inflation and restructuring costs, but gross margins held firm. Marketing expenses remained significant—N3.55 billion in Q1—as the company continued investing in brand equity, particularly in personal care and food segments where competition remains intense.
The segment report also shows a balanced profitability profile, with food products generating N4.84 billion in operating profit, personal care N2.66 billion, and beauty & wellbeing N762 million. This diversification reduces earnings risk and underlines the company’s broad consumer reach.
Looking ahead, Unilever’s improving liquidity position, manageable debt levels, and ability to generate cash suggest it is well-placed to weather macroeconomic uncertainty, invest in innovation, and potentially reward shareholders in the medium term.
