Unilever’s profit soars by 239.1%

Stories By Amaka Ifeakandu Lagos

Unilever Nigeria Plc, has recorded growth at the end of half year fi nancial report ended June 30, 2017 as its profi t before tax soared by 239.1 per cent. Th e company result submitted to NigerianStock Exchange showed that the PBT grew by N3.556 billion to N5.044 billion, as against the N1.487 billion reported in the corresponding period of last year. Th e tax paid by the company stood at N1.367 billion from N393.615 million recorded the previous period. Th is resulted in a N3.556 billion or 236.22 per cent rise in net profi t at N3.676 billion, which translates to earnings per share of 97 kobo as against N1.093 billion net profi t or 29 kobo in the fi rst half of 2016. Th e result, which raised investors hope of a dividend payment should the performance continue at this rate till

full year, showed that revenue from sales stood at N45.105 billion, representing a N12.827 billion or 39.74 per cent increase from previous half-year’s N32.277 billion A breakdown of the fi gure showed that the lion’s share of revenue or N20.725 billion came from the company’s food product segment, up from the previous N16.864 billion; followed by personal care with N12.123 billion, as against N7.915 billion; while the home care segment yielded N12.255 billion from N7.496 billion. For the period also, N44.343 billion or over 98.31 per cent of revenue came from Nigeria, with only N761.159 million earned from sale of fi nished goods to sister companies in Ghana and Cote D’Ivoire. Within the period, fi nished goods purchased from Unilever Ghana Limited stood at N779.94 million , down from N1.394 billion in the fi rst half of 2016; and N159.003 million from nil in the fi rst half of prior, bringing total to N938.943 million compared with N1.394 billion. Cost of sales rose by 45.53 per cent or N9.982 billion from N21.924 billion in the corresponding period of 2016, to N31.197 billion, leaving gross profi t at N13.907 billion compared to N10.353 billion previously.

Selling and distribution expenses rose to N1.942 billion from N1.502 billion, while marketing and administrative expenses fell to N5.571 billion as against N6.689 billion in 2016, bringing gross profi t for the period to N6.394 billion, which was signifi cantly higher than the N2.161 billion recorded earlier. Finance income was N374.977 million, slightly better than the N220.856 million recorded in 2016; while fi nance costs more than doubled to N1.725 billion from N894.891million.

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