Unilever Nigeria Grows Profit by 310% in Q4, 2022 as Cost of Sales Moderated Significantly

Unilever Nigeria, a leading nutrition, hygiene and personal care company, reported stronger-than-expected fourth quarter (Q4) financial results for 2022 as the company made a series of adjustments to key areas.

Revenue grew by 14.88% to N23.952 billion from N20.850 billion recorded in Q4 2021. Cost of sales moderated by 30.51% to N9.652 billion, down from N13.890 billion spent on sales in Q4 2021.

Similarly, gross profit increased by 105.47% from N6.959 billion reported in Q4 2021 to N14.301 billion in the quarter under review.

Impairment loss on trade and intercompany receivables also declined to N3.596 million, a 97.69% decrease when compared to N156.264 million achieved in Q4 2021.

The company disclosed this in its unaudited financial statement released on Tuesday and obtained by Investors King.

Operating profit stood at N8.034 billion in the quarter, up from N2.319 billion posted in the same quarter of 2021.

Profit after tax for the quarter grew by 310% from N1.546 billion to N6.341 billion.

However, a critical analysis of the entire 2022 financial statement shows that despite the strong Q4 result, weak Q1, Q2 and not-so-good Q3 dragged on the company’s overall performance in the year.

Cost of sales rose by 14.12% to N57.238 billion from N50.162 billion in 2021, against the decline recorded in the fourth quarter.

Marketing and administrative expenses grew to N18.282 billion, an increase of 20.90% from N15.121 billion in 2021.

Profit after tax increased by 75.77% to N5.993 billion from N3.409 billion.