Last Updated on 27 December 2024 by Naijadazz
Unilever Nigeria Plc has demonstrated a robust financial performance in the fiscal year ending December 31, 2023. The company reported a total revenue of ₦103.88 billion, a significant increase from ₦68.64 billion in 2022, reflecting a remarkable 51.3% growth. This surge indicates strong market demand and effective sales strategies. Operating profit reached ₦20.26 billion, up from ₦8.45 billion, marking a substantial 139.8% increase. Such growth in operating profit suggests enhanced operational efficiency, with the operating profit margin improving from 12% to 20%.
The profit from continuing operations exhibited substantial growth, rising to ₦16.41 billion from ₦5.38 billion, representing a 205.2% increase. This improvement is particularly noteworthy as it underscores the strength of Unilever’s core business activities amid challenges faced in other segments.
Despite the positive trajectory in continuing operations, Unilever Nigeria encountered significant losses from discontinued operations amounting to ₦7.97 billion, an increase from ₦911 million in the prior year. This loss is primarily attributed to the strategic decision to exit the home care segment, which was completed in September 2023. While this move may pose short-term challenges, it reflects a long-term strategy aimed at focusing on more profitable product lines.
The effective tax rate decreased significantly from 38.3% to 25%, contributing positively to net profitability. After accounting for taxes and losses from discontinued operations, the profit for the year stood at ₦8.44 billion, an increase of 88.9% compared to ₦4.47 billion in 2022.
Total equity increased by 10.3% to ₦74.51 billion, indicating a solid foundation for future growth and investment opportunities. The company’s capital expenditure rose by 44%, reaching ₦2.25 billion, signaling ongoing investments in infrastructure and capacity expansion.
However, cash and cash equivalents saw a decrease of 14.5%, falling to ₦56.70 billion from ₦66.32 billion in the previous year. While this reduction may raise concerns regarding liquidity, Unilever still maintains a robust cash position that can support operational needs and strategic investments.
Earnings per share (EPS) nearly doubled, increasing from ₦0.78 to ₦1.47, reflecting enhanced shareholder value despite the losses incurred from discontinued operations. The net assets per share also increased by 10.3%, further indicating positive growth in shareholder equity.
Unilever Nigeria’s financial results for 2023 reflect strong recovery and growth driven by its core operations while navigating challenges associated with discontinued segments. The company’s strategic focus on enhancing operational efficiencies and investing in growth areas positions it well for future success in the Nigerian consumer goods sector, highlighting its resilience amidst market challenges and its commitment to sustainable growth opportunities moving forward.
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