Unilever Nigeria Plc has turned a divestment into a high-margin revenue engine, as its 2025 financial results reveal a surge in income from its “tea-as-a-service” model. Five years after offloading its tea assets to align with its parent company’s global strategy, the consumer goods giant has moved from deep losses to record profits.
The recovery is quietly underpinned by a Transitional Service Agreement (TSA) with Lipton Teas and Infusions (formerly Ekaterra), which earned Unilever Nigeria N842 million in 2025, nearly four times the N194 million figure in 2024. In 2023, it gained N138 million from the agreement.
The N842 million fee represents the highest payout in the three years since the spin-off. Under the agreement, Unilever Nigeria continues to provide manufacturing and sales support for tea products for a fee, effectively generating revenue without the heavy overhead of asset ownership.
This asset-light approach has bolstered the company’s balance sheet. Before the 2021 divestment, the firm was bogged down by rising costs and a difficult macro environment, culminating in a N4 billion loss in 2020. The 2021 sale of its tea assets for approximately N5.4 billion—once viewed as a retreat—now appears to have been the catalyst for a ₦20 billion cumulative profit streak in the last four years.
Unilever Nigeria doubled its profit in the last fiscal year alone, reflecting the efficiency of its new operating model. The company earned N30 billion in 2025 profits from N15 billion in 2024. In 2023, profit grew to N8 billion from N4 billion in 2022.
Investors have taken note of the company’s aggressive recovery. At the opening of the Nigerian stock market on Monday, Unilever Nigeria’s shares were trading at ₦90, reflecting improved sentiment as the company successfully transitions from a traditional manufacturer to a specialised service and consumer goods powerhouse.
The company now focuses on its high-growth segments: Foods, Beauty & Wellbeing, and Personal Care. It also maintains a manufacturing services agreement with Lipton Teas and Infusions for its former tea business assets.
