Unilever moves from loss in Q1 2021 to profit in Q1 2022
By Jeph Ajobaju, Chief Copy Editor
Unilever Nigeria shrugged off its N492 million loss in the first quarter of 2021 (Q1 2021) with N1.80 billion profit in Q2 2022 amid rocketing inflation that affects its brands across food, household, and personal care products.
Its financial results show that profit was driven by high sales of Food and Home and Personal care products, both of which segments delivered N20.24 billion in full year 2021 (FY 2021) against N16.51 billion in FY 2020.
Revenue from Food products rose 26.15 per cent YoY to N9.44 billion, Home and personal care products grew 23.20 per cent to N11.12 billion.
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Breakdown
Revenue is broken down into Domestic and Export sales, according to reporting by Nairametrics.
Domestic sales fetched N20.24 billion in Q1 2022, exports grew 229.26 per cent to N322 million.
The company made N35.91 million income from a Transitional Service Agreement (TSA) following the sale of its tea business to Unilever Tea MSO Nigeria.
The agreement will last 15 months, during which time Unilever Nigeria will give Unilever Tea MSO production and sales support in exchange for a fee.
Marketing and distribution expenses increased 9 per cent.
Total assets – N116.33 billion
Net assets – N67.56 billion (up 2.73 per cent)
Dividend declared – N0.50 kobo (FY 2021, to be paid on 6 May 2022)
Earnings per share – N0.31 (Q1 2022)
Disposal of tea business
Unilever Tea MSO, a related party in the Unilever Group, bought the tea business of Unilever Nigeria for N5.4 billion in 2021.
This was disclosed in the Audited Financial Statement the company filed with the Nigerian Exchange Limited (NEL) in March 2022, reported by Nairametrics.
The tea business was included in the discontinued operations segment of the statement, which showed that Unilever Nigeria also disposed of property, plants, and equipment as well as long service award obligations.
Before the tea business was sold in October 2021:
- It had a turnover of N9.05 billion in the first nine months of 2021 (M9 2021), a 7.17 per cent decline versus M9 2020.
- It migrated from loss to N2.72 billion profit in M9 2021.