Consumer goods firm Unilever Nigeria has reported a strong Q1 2023 financial result with an 88% growth in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
This was disclosed in the company’s unaudited financial statement accessed by Investors King.
Unilever’s Q1 2023 EBITDA increased to N5.1 billion from N2.72 billion in the corresponding period of 2022, representing an 88% growth. EBITDA margin also improved to 20.6% from 13.6% in Q1 2022. The operating profit for the period was N4.56 billion, up 108% from N2.19 billion recorded in the same period of the previous year.
The company’s revenue grew by 19.7% to N24.6 billion in Q1 2023 from N20.6 billion in the same quarter of 2022. The food segment, which includes Blue Band, Knorr, and Royco, recorded a revenue growth of 39.1% to N13.3 billion in Q1 2023 from N9.6 billion in the same period of 2022.
However, Unilever’s operating expenses saw an increase of 45%, rising to N11.89 billion from N8.2 billion. The increase can be attributed to an increase in selling and distribution costs, which rose by 47% to N10.6 billion from N7.2 billion recorded in the same period of the previous year.
Meanwhile, marketing and administrative expenses amounted to N1.26 billion from N1 billion in the same quarter of the previous year.
Unilever’s profit after tax also grew by 49% to N2.67 billion in Q1 2023 from N1.79 billion in the corresponding period of 2022. Gross profit also grew by 7.2% to N10.6 billion in Q1 2023 from N7.2 billion recorded in the previous year.
Despite the impressive performance, Unilever Nigeria plans to exit its home and personal care segment due to unsustainable business conditions. The food segment is expected to be the main revenue driver for the company in the coming quarters.
Unilever Nigeria’s Q1 2023 financial results have been applauded by industry analysts, who see it as a testament to the company’s resilience in the face of a challenging business environment.
The company’s commitment to sustainability and social impact has also endeared it to many stakeholders.
