BusinessDay

Finance income lifts Unilever’s 2022 profit by 75% to N6bn

Unilever, one of Nigeria’s major consumer goods firms recorded its highest profit in four years, helped by an increase in finance income, analysis by BusinessDay has shown.

The firm saw its profit after tax jump to N5.99 billion in December 2022 from N3.41 billion in December 2021.

Finance income climbed 79.4 percent to N1.83 billion in December 2022, coming from N1.02 billion in December 2021.

The increase in Unilever’s finance income was largely attributable to interest on call deposits and bank accounts.

The firm’s interest on call deposits and bank accounts increased by a massive 210 percent to N1.83 billion in the full year of 2022 from N590.6 million in the full year of 2021.

Unilever’s revenue grew to N88.72 billion in December 2022, up 26 percent from N70.52 billion in December 2021.

The total revenue of N88.72 billion was driven mainly by the home and personal care segment which contributed N46.1 billion while N42.6 billion was obtained from its food products segment in the full year of 2022.

Similarly, the home and personal care segment contributed the most of N39.52 billion while N31 billion was obtained from food products to the total revenue of N70.52 billion in the full year of 2021.

Unilever’s cost of sales increased to N57.24 billion, up 14 percent from N50.16 billion in the comparable periods.

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Gross profit surged by 54.6 percent to N31.48 billion in the full year of 2022 from N20.36 billion in the corresponding period of 2021.

Operating profit grew to N8.57 billion, a massive 658 percent increase from N1.13 billion in the reviewed period.

Unilever’s selling and distribution expenses increased by 44.5 percent to N4.8 billion from N3.32 billion in the comparable periods.

Marketing and administrative expenses climbed 21 percent to N18.3 billion in the full year of 2022 from N15.12 billion in the full year of 2021.

Property, plant, and equipment dipped 4.3 percent to N21.4 billion from N22.37 billion in the period reviewed.

Unilever’s cash and bank balances stood at N68.17 billion in the full year of 2022, a 22.4 percent increase from N55.7 billion in the full year of 2021.

Total equity grew 5 percent to N69.2 billion in December 2022 from N65.76 billion in December 2021.

The firm’s net cash flow generated from operating activities dipped 38 percent to N12.46 billion from N20.1 billion in the comparable period.

Net cash flows used in investing activities stood at N734.5 million from a negative cash flow of N927.9 million in the reviewed period.

Net cash used in financing activities stood at N714 million from N363.07 billion negative cash flow year on year.

The firm’s cash and cash equivalents at the end of the period rose to N68.17 billion, up 22.4 percent from N55.7 billion in the period reviewed.

Unilever’s basic and diluted earnings per share attributable to equity holders increased to N1.04 in the full year of 2022 from N0.59 in the same period of 2021.