Unilever Nigeria Plc grew profit after tax by 67.3% to ₦5.55 billion in the first quarter (Q1) of 2025 from ₦3.36 billion recorded in the same period last year.
According to the unaudited financial statements released by the company, total revenue for the first quarter stood at ₦46.98 billion, representing a 45.4% increase from ₦32.32 billion reported in Q1 2024.
The rise in revenue was driven by continued growth in both the food and home/personal care categories, supported by stronger consumer demand and pricing adjustments aligned with inflationary pressures.
Cost Management and Operating Efficiency
Cost of sales rose to ₦28.12 billion from ₦18.81 billion in the corresponding period of 2024, representing a 49.4% increase.
Despite the rise in input costs, the company maintained a strong gross profit of ₦18.85 billion, up 39.6% from ₦13.50 billion in the previous year. Gross profit margin, however, narrowed slightly due to the higher cost of goods sold.
Selling and distribution expenses increased to ₦1.71 billion from ₦1.40 billion while marketing and administrative expenses rose to ₦9.09 billion, up from ₦8.29 billion in Q1 2024.
The moderate growth in operating expenses suggests a balanced approach to brand investment and cost control, preserving operating leverage in a volatile environment.
Notably, the company recorded an impairment write-back of ₦140.09 million on trade and other receivables, compared to ₦3.88 million in Q1 2024. Other income rose to ₦76.89 million from ₦25.31 million.
Operating and Net Profit Performance
Operating profit for the period stood at ₦8.27 billion, more than doubling from ₦3.84 billion in the prior year.
Finance income increased to ₦2.66 billion in Q1 2025 from ₦1.99 billion a year earlier while finance cost fell sharply to ₦172.07 million from ₦1.48 billion.
The resulting net finance income rose to ₦2.48 billion, up from ₦516.28 million in Q1 2024 — a 381% increase, largely supported by higher yields on cash investments and a decline in debt-related expenses.
Profit before tax came in at ₦10.75 billion, marking a 146.6% increase from ₦4.36 billion recorded in the same period last year. After accounting for a tax charge of ₦5.20 billion, Unilever reported a net profit of ₦5.55 billion, up from ₦3.36 billion — solidifying a profit margin expansion.
Earnings Per Share and Shareholder Value
Basic and diluted earnings per share stood at ₦0.97, compared to ₦0.58 in the first quarter of 2024, reflecting the improved profitability and efficient capital management.
The Q1 performance provides a strong earnings base for the remainder of the year and demonstrates management’s ability to navigate economic headwinds, including currency volatility and cost pressures.
Outlook
With the continued implementation of the company’s strategic transformation agenda, including portfolio optimization, cost efficiency, and supply chain resilience, Unilever Nigeria Plc appears well positioned to sustain growth in 2025.
The market will be watching closely for further developments, particularly in light of persistent inflation, potential currency depreciation, and evolving regulatory dynamics.
Given the stable balance sheet, enhanced margins, and improved net finance position, Unilever’s Q1 results indicate a positive trajectory for full-year earnings — pending continued economic stability and effective cost containment.
