• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      CBN says cryptocurrency ban in interest of Nigerians

      February 25, 2021

      Companies-in-Action

      Zenith Bank in strong operational performance as profit rises 10.4% to N230.56bn in FY20

      February 25, 2021

      Companies

      United Capital posts strong numbers as earnings rise 50% to N12.87bn in 2020

      February 23, 2021

      Finance

      CIBN revives mentorship initiative for bank workers

      February 20, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Insurance Business

      Enterprise risk management surges amid pandemic, RIMS reports

      February 25, 2021

      WORLD BUSINESS & ECONOMY

      Hyundai to recall 82,000 electric cars over battery malfunction

      February 25, 2021

      Frontpage

      Global health insurance premiums fall amid pandemic, says new report

      February 24, 2021

      Frontpage

      Insurance M&A record highest growth in Africa, Middle East in 2020

      February 23, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Oil and Gas

      REA delivers 100kW hybrid solar mini grid to Edo community

      February 25, 2021

      Oil and Gas

      OPL 310: LEKOIL engages Optimum Petroleum over CRSA agreement

      February 25, 2021

      Frontpage

      Nigeria still losing 200,000bpd crude daily as NNPC enlists army’s intervention

      February 25, 2021

      Frontpage

      Nigeria to sell 170MW electricity capacity to Togo from Calabar plant

      February 24, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      Coronation MB analysts project sharp rates rise after Nigeria recession exit

      February 25, 2021

      Analyst Insight

      How NITDA can further foster data protection compliance in Nigeria

      February 22, 2021

      Analyst Insight

      Do we need more start-ups in insurance?

      February 16, 2021

      Analyst Insight

      Naira, PMI’s and Inflation in focus

      February 16, 2021

Companies Manufacturing

Unilever Nigeria cuts operating loss significantly as revenue rises 1.3% to N61.6bn

January 26, 2021295 views0 comments

By Charles Abuede

 

  • Gross profit surged to N13.8bn, but with N3.05bn operating loss in FY20
  • Growth was chiefly driven by food products

 

Unilever Nigeria Plc, a leading personal care and consumer goods company in Nigeria, saw a 1.3 per cent year on year increase in revenue from N60.8 billion to N61.6 billion in its fiscal year 2020.

Read Also:

  • Unilever Nigeria to complete tea business separation by end of 2021
  • Homeowners’ insurance industry should expect modest underwriting loss,…
  • Jumia’s road to profitability steady as gross profit rises 22% to €92.8m in FY20
  • Zenith Bank in strong operational performance as profit rises 10.4% to…
  • Nestlé reports stormy revenue statistics amid covid-19 pandemic

Unilever Nigeria cuts operating loss significantly as revenue rises 1.3% to N61.6bn

The increase was driven by 8.8 per cent year-on-year growth in its food products, which was slightly offset by a 6.9 per cent revenue drop in the home and personal care segments.

The company, in its unaudited interim financial statements for the year ended December 2020 filed with the Nigerian Stock Exchange on Tuesday, disclosed that during the period under review it recorded a gross profit of N13.8 billion as against N6.7 billion in FY2019, while the operating loss for the period stood at N3.05 billion from N10.35 billion in 2019.

A breakdown of the financial results shows that the revenue increase corresponded with a year on year drop in the cost of sales by 11.6 per cent, resulting in a spectacular 11.4 percent points increase in gross margin to 22.4 per cent in the year 2020. The company further reported that it managed to control costs better in FY20 as the marketing and distribution expenses declined 1.7 per cent to N12.9 billion, whereas the selling and distribution expenses slumped 10.5 per cent year on year to N2.8 billion.

However, despite the somewhat lower net finance income, the company’s loss for the year 2020 retreated by 62.3 per cent year on year to N1.6 billion, motivated by the robust top-line growth and strong operating performance.  The company’s operating cash flows turned positive in 2020, owing to strong operating performance and better receivables management over the last two years.

A further lookat the quarterly performance,shows Unilever recorded a solid 84.4 per cent year on year growth in revenues in the last quarter of 2020 to N16.8 billion. On a quarter on quarter basis, the 3.2 per cent revenue decline was overshadowed by a 5.3 per cent decrease in the cost of sales to N12.9 billion, resulting in a 1.7 percentage points increase in gross margin to 23.1 per cent in the fourth quarter of last year. Also, the robust top-line performance permeated down to the operational level and the company reported a profit in the quarter, after two consecutive quarters of losses.

Unilever Nigeria recorded a quarter on quarter decline in its marketing and administrative expenses by 14.0 per cent to N3.4 billion, while the selling and distribution expenses were down 9.4 per cent to N745 million in 4Q 2020. The company further reported a net profit of N468 million in 4Q 2020 against a net loss of N1.5 billion in the Q3 of 2019. The EBITDA and net margin was 8.9 per cent and 2.8 per cent respectively in 4Q 2020 as against the negative margins of 3.3 per cent and 8.9 per cent in the prior quarter respectively.

Meanwhile, the company’s stratagem of initiating smaller packaging for price-sensitive consumers seem to be paying off as the food products segment continued to report strong numbers. An examination of the food product segment saw the company recording a quarter on quarter revenue decline by 2.2 per cent to N9.6 billion, while the home and personal products segments recorded a quarter on quarter revenue fall of 4.5 per cent to N7.2 billion in 4Q 2020. However, both the segments recorded an operating performance improvement with the food products segment operating loss slumping 86.7 per cent to N109 million from last quarter, with the home and personal care segment sinking 87.0 per cent to N82.0 million in 4Q 2020 from Q3 2020.

 

Share on Facebook Tweet Email
PreviousBargain hunters feast on Airtel, MTN, Lafarge as Nigeria bourse swings higher
NextTencent $1trn market cap on hold after 11% stock surge

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • How India Could Win Its COVID Vaccination Race
  • Nigeria missing out on 298m jobs, $7.6trn beach-driven T&T market
  • Nigeria’s reserves down $1.38bn in 30 days amid rising oil prices
  • Coca-Cola, SWEEP foundation flag off environmental sustainability programme
  • Petrol: CSOs canvass labour union’s support for deregulation

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Nigerian trawlers bet on waterways with N18bn vessels despite economic, security challenges

Frontpage September 25, 2017

1
2

Buhari appoints new FIRS chairman

Frontpage December 9, 2019

3

Nigeria oil minister lists 5 major agenda, including reducing government shares in JV firms

Frontpage September 20, 2019

4

Consumers to resist planned 2020 hike in Nigeria electricity tariff

Frontpage August 22, 2019

5

Nigeria’s executive, legislature face-off slows economic policies

Frontpage February 12, 2018

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.