Unilever Nigeria generates N24.60bn in three months, loses 57% to costs

The cost of operation weighed on Unilever Nigeria’s revenue in the first quarter (Q1) of 2023, the firm’s Unaudited Interim Financial Statements showed.

Ripples Nigeria gathered from the financials released on April 22 that Unilever lost 57 per cent of its revenue to cost of production, after spending N14 billion to manufacture its products in Q1 this year.

Unilever produces food products, skincare and oral care brands, fabric care and household cleaning products which cost the company N13.38 billion to manufacture last year’s first quarter.

The company generated N24.60 billion in revenue from these products between January to March 2023. This is 20 per cent above the N20.56 billion Unilever reported as turnover in Q1 2022.

Unilever also saw its gross profit grow faster than the revenue and cost of production, as it reported 47.75 per cent growth in gross profit.

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According to the earnings report, Unilever grew its gross profit to N10.60 billion in the first three months of this year, surpassing the N7.17 billion reported in the first quarter of last year.

Also, Unilever recorded 48.65 per cent growth in its profit after tax which closed Q1 2023 with N2.67 billion, above the N1.79 billion recorded during the corresponding period in 2022.

Meanwhile, Unilever has stated that the company will sell part of its Home Care and Skin Cleansing business, which contributed N11.27 billion to the total revenue generated in Q1 this year.

The company told Ripples Nigeria in a statement that the sale will affect the production of OMO, Sunlight and Lux, while the remaining brands under its Home Care and Skin Cleansing business will remain with Unilever.

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