Unilever Nigeria Plc kicked off 2025 on a high note, more than doubling its first-quarter after-tax profit to ₦5.55 billion—up from ₦3.36 billion a year earlier—driven by a 45 percent jump in revenue, disciplined cost management, and strong cash generation. Revenue climbed to ₦46.98 billion, with food products leading at ₦27.5 billion. Operating profit more than doubled to ₦8.27 billion, while net finance income soared as finance costs plunged 88 percent. Despite a higher tax bill, Unilever’s net profit and cash buffers strengthened, setting the stage for sustainable growth and shareholder value.
Robust Revenue Growth
Unilever Nigeria’s top line expanded by 45 percent year-on-year to ₦46.98 billion, compared with ₦32.32 billion in Q1 2024, underscoring strong consumer demand across all segments.
- Food Products: Drove the bulk of growth, with revenue of ₦27.5 billion—nearly 59 percent of total sales—thanks to successful pricing and volume strategies in staples and spreads.
- Personal Care & Beauty & Wellbeing: Also reported healthy double-digit growth, reflecting resilience in household and personal-care spending.
Profitability and Cost Control
The company’s gross profit rose 40 percent to ₦18.85 billion, while operating profit more than doubled to ₦8.27 billion, highlighting effective cost management. Key drivers included:
- Raw-Material Hedging: Strategic sourcing cuts input-cost inflation.
- Lean Operations: Savings from post-Home Care exit and factory rationalisation.
- Marketing Discipline: ₦3.55 billion invested in campaigns, targeted to high-ROI brands.
Strong Finance Income Boost
Net finance income jumped to ₦2.48 billion, up from ₦516 million in Q1 2024, propelled by:
- Finance Costs Down 88 Percent: Paid off expensive borrowings, slashed trade-finance exposures.
- Higher Interest Earnings: Grew fixed-deposit returns amid favourable interest rates and FX gains on cash holdings.
Resilient Balance Sheet
Unilever’s liquidity and equity positions improved markedly:
- Cash & Equivalents: Swelled to ₦79.78 billion, up over ₦11 billion since December 2024, driven by a positive operating-cash flow swing to ₦9.56 billion.
- Shareholders’ Equity: Rose to ₦90.66 billion, with retained earnings up ₦5.5 billion in the quarter.
- Debt Management: Low leverage and ample headroom for strategic investments or shareholder returns.
Segment Profitability Breakdown
A balanced segment mix underpins Unilever’s earnings:
| Segment | Revenue (₦ billion) | Operating Profit (₦ billion) |
|---|---|---|
| Food Products | 27.5 | 4.84 |
| Personal Care | (Included in total) | 2.66 |
| Beauty & Wellbeing | (Included in total) | 0.76 |
This diversification cushions the group against volatility in any one category.
Outlook and Investor Takeaways
Unilever Nigeria’s Q1 performance reflects a successful turnaround and strong execution:
- Investment in Innovation: Continued R&D in new product lines.
- Capacity for Dividend: Cash flow strength points to potential payouts once strategy stabilises.
- Risk Mitigation: Balanced segment mix and conservative leverage support resilience.
Overall, the company appears well-positioned to navigate macroeconomic headwinds, invest in growth, and reward shareholders in the medium term.