Unilever Nigeria Plc, a leading consumer goods manufacturer, has reported a substantial 25.95 percent growth in revenue, amounting to N81.576 billion for the period ending September 30, as compared to N64.768 billion in the corresponding period of 2022. The company disclosed these figures in its unaudited interim financial statements for the nine-month period, which were filed with the Nigerian Exchange Limited on Friday.
During the same period, the group achieved a profit of N1.669 billion, a significant turnaround from a loss of N348 million recorded as of September 30, 2022. This transformation was attributed to an upsurge in net finance income, which rose to N3.179 billion from a loss of N70 million in 2022.
Nevertheless, in the third quarter, Unilever Nigeria Plc managed to slash its losses by 51.60 percent to N1.091 billion, a significant improvement from the N2.254 billion loss incurred during the same period in 2022. Its revenue for the three months also saw a notable increase of 30.57 percent, reaching N27.371 billion from N20.962 billion in the same period last year.
The company witnessed a substantial rise in finance costs during Q3, escalating by 215 percent to N1.034 billion from N328 million in the third quarter of 2022. This, in combination with a tax expense of N1.481 billion, contributed to the downward trend.
In March, Unilever Nigeria Plc had announced its decision to exit the home care and skin cleansing category. According to the company’s report, the production for the home care category ceased in June, with sales halting in September, while the production and sale for the skin cleansing category have been extended until December 2023. The impacted products include Vaseline, Omo, Lux, Dove, Lifebuoy, and Rexona.
The group clarified that this move was part of its strategy to transform its business model, accelerate growth, and better meet the requirements of consumers, shareholders, and employees. The statement emphasized the intention to repurpose the portfolio by focusing on higher growth opportunities, streamlining business operations through digitalization, and prioritizing business continuity measures to reduce exposure to devaluation and currency liquidity within the business model.
Unilever Nigeria Plc anticipated that its withdrawal from these two categories in 2023 would lead to an overall enhancement in profitability, growth, and the establishment of a more sustainable business.