…reaches N21.9bn pre-tax profit in 2023

Unilever Nigeria has announced a significant increase in its pre-tax profit, reaching N21.9 billion for the year ended 31 December 2023. This marks a remarkable 151% surge from the N8.7 billion recorded in 2022.

The company’s audited financial statements for 2023 reveal a revenue of N103.9 billion, representing a 51.3% increase from N68.6 billion in 2022. Profit after tax for 2023 stood at N16.4 billion, a remarkable 205% increase from N5.4 billion in 2022.

However, due to the discontinuation of certain operations, the company incurred a loss of N8.0 billion, resulting in a net profit for the year of N8.4 billion.

In 2023, Unilever’s nutrition products generated N63.3 billion in revenue, while personal care products generated N33.1 billion. The discontinued home care operations generated N10.5 billion in revenue.

Key highlights for 2023 compared to 2022 include:

Revenue: N103.9 billion, up by 51.3% year-on-year (YoY)

Cost of sales: N67.9 billion, up by 61.4% YoY

Gross profit: N36.0 billion, up by 35.4% YoY

Selling and distribution expenses: N4.1 billion, up by 42.3% YoY

Marketing and administrative expenses: N16.0 billion, up by 7.5% YoY

Operating profit: N20.3 billion, up by 139.8% YoY

Profit before taxation: N21.9 billion, up by 151.0% YoY

Profit for the year: N8.4 billion, up by 88.9% YoY

Earnings per share: N2.86, up by 204.3% YoY

Total assets: N116.3 billion, down by 7.2% YoY

Unilever announced the cessation of its home care business category in March 2023, discontinuing the production of Omo, Sunlight detergents, and Lux soaps. This move accounted for discontinued operations and assets held for sale in the company’s financial statements.

The discontinuation of these operations led to a 7.2% decline in total assets, with the value of property, plant, and equipment decreasing to N18.8 billion in 2023 from N21.5 billion in 2022. The company accrued a relatively low foreign exchange loss of N223 million in 2023, attributed to reduced foreign currency exposures.

Unilever is proposing a final dividend of 75 kobo per share for 2023, a 200% increase from the 25 kobo per share paid in 2022.

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