Unilever Q3 results show growth, resilience

Unilever Nigeria Plc’s results for the period ended 30th September 2016 shows continued growth and resilience. The company recorded turnover and profit after tax of N49.87 billion and N1.56 billion respectively with improvements across board against prior year. Consistent improvements in performance over the last four quarters demonstrate the company’s continued resilience under tough operating conditions.

The result shows 16.8% topline growth from N42.69 billion turnover reported for the period ended September 30, 2015 to N49.87 billion recorded for the period ended September 30, 2016.

Cost of sales increased by 26.4% to N35.17 billion for the period ended 30th September 2016 from N27.8 billion recorded in the corresponding period in 2015 while there was 11.7% reduction in marketing and administration expenses from N10.6 billion reported for the period ended 30th September 2015 to N9.3 billion for the corresponding period in 2016. The results include the impact of devaluation of the Naira.

Net finance costs reduced by 26% to N1.6 billion for the nine months ended September 30, 2016 compared to N2.1 billion reported for the corresponding period in 2015. The results show that net finance cost as a function of operating profit improved significantly to 51% (2015: 92%), reflecting improvements in cash management.

Profit after tax for the period ended September 30, 2016 increased significantly by 1,011% to N1.5 billion from N141 million reported in the corresponding period in 2015.

In a statement released by the company, Unilever Nigeria said ‘The operating environment appeared even more turbulent as trading conditions remained difficult in the third quarter of 2016 amidst rising costs, increase in interest rates, foreign exchange illiquidity and pressure on consumers’ disposable income. However, we have continued to navigate the challenging operating terrain through dynamic planning and optimization of resources.