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Unilever posts N4.224bn loss amidst revenue crunch



Unilever posts N4.224bn loss amidst revenue crunch

Consumer goods company, Unilever Nigeria Plc, has declared a N4.224 billion loss for the year ended 31st December 2019.

This and other details of its financials are stated in Unilever Nigeria Plc Unaudited Interim Financial Statements, posted on the website of the Nigerian Stock Exchange (NSE) on Thursday.

The firm, a subsidiary of London-headquartered Unilever Overseas Holding B.V., recorded a considerable slump in revenue, which shrank from N92.025 billion at Full Year 2018 to N60.758 billion at the corresponding period of 2019, translating to 35% fall.

Loss Before Taxation stood at N8.322 billion in the year under review compared to a Profit Before Tax (PAT) of N13.563 billion the year before.

Loss After Taxation was N4.224 billion at FY2019 relative to N10.148 billion posted as Profit After Tax (PAT) at FY2018.

Loss Per Share stood at N0.74 compared to the Earnings Per Share (EPS) of N1.77 recorded at FY2018.

Read also: BMO faults World Bank, IMF projections, says 2.9% economic growth achievable

Beside a conspicuous shortfall in Unilever’s earnings, there was a couple of other factors responsible for the company’s lacklustre performance at FY2019.

Its Cost of Sales of N54.086 billion was pretty high compared to a turnover of N60.758. Equally, its Finance Costs skyrocketed from N452.601 million in 2018 to N824.151 million in 2019, meaning that the interest and other costs the company incurred in connection with the borrowing of funds soared by 82% within one year.

Earnings Per Share is the profit that each unit of a company’s ordinary shares yields during a particular period. It is simply calculated by dividing the Profit After Tax by the company’s total outstanding shares. Increase in a company’s EPS often reflects an improvement in its bottom-line while a fall, on the other hand, indicates a declining profit.

Unilever currently trades on the floor of the NSE at N18 per share.

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