Unilever Nigeria Plc, one of the country’s top fast-moving consumer goods firms, is enjoying a renaissance in 2024.
The FMCG firm reported a turnaround in its third quarter results, posting an after-tax profit of N6.57 billion for the period ending September 30 2024, compared to a loss of N1.09 billion in September 2023.
Unilever’s improved financial performance in Q3 2024 extends the company’s positive outturn this year after a turbulent period in the preceding years.
In the first and second quarters of 2024, the multinational recorded N3.35 billion and N1.08 billion in after-tax profit respectively.
In a statement, the company also disclosed that its nine-month net profit rose to N11 billion, compared to N7.5 billion in the same period of 2023, which is a 47 percent increase.
“The consistency in our quarter-on-quarter sustained growth and performance remains a testament that with our Growth Action Plan (GAP), we are committed to serving consumers with our best brands to meet their daily needs of improved health and hygiene,” Tim Kleinebenne, managing director of Unilever, said.
“Unilever Nigeria is pleased with its performance progress riding on the pillars of operational efficiency, cost optimization, purposeful brands and increasing market share across key categories,” he added.
The company’s stock started 2024 with a share price of N14.90 and traded at a share price of N19.95 as of October 22, 2024.
Between July and September 2024, Unilever appreciated by 6.3 percent, moving from N18.00 as of July 1 to N19.15 as of September 30. During the same period, there was immense buy pressure on Unilever shares, which surprised market observers.
However, due to 2024’s surge, the firm has now hit a market capitalisation of N109.1 billion, making it one of the most capitalised consumer goods stocks in the NGX.
Further analysis shows that its operating profit in the third quarter (Q3) rose to N10.1 billion from N7.9 billion in the same period last year while finance income rose to N6.5 billion from N5.3 billion.
The company’s revenue rose to N39.9 billion in Q3 from N25 billion in the same period of last year.
This increase was driven by food products, which increased to N24 billion from N15.1 billion, personal care, which increased to N12 billion from N8.7 billion, and Beauty and well-being, which increased to N3.1 billion from N2 billion.
Its finance income jumped to N6.67 billion from N4.57 billion, driven mainly by exchange differences in bank balances and interest on call deposits and bank accounts.
Its total assets in its nine-month period fell to N134 billion from N135 billion during the period reviewed while total liabilities also fell to N53 billion from N67 billion.
Net cash flow generated from operating activities stood at a negative of N350 million from a positive N6.7 billion. Net cash flows from investing activities arrived at a negative of N816 million from a positive N1.4 billion.
Net cash used in financing activities stood at a negative N6.8 billion from a negative N624 million.
Unilever Plc is a British multinational fast-moving consumer goods company founded on 2 September 1929 following the merger of British soap maker Lever Brothers and Dutch margarine producer Margarine Unie. It is headquartered in London.
