Food product business lifts Unilever’s revenue to N43bn in H1

Unilever Nigeria Plc in its half-year (H1) 2022 financial statement reported a 35 percent increase in revenue to N43.81 billion from N32.42 billion in the first half of 2021.

The firm’s revenue growth is attributed to the 39.5 percent growth in its food product business which amounted to N19.87 billion in the first half of 2022, an increase compared to N14.24 billion in the first half of 2021.

Revenue generated by home and personal care products also grew by 31.4 percent to N23.93 billion in the first half of 2022 from N18.18 billion in the first half of 2021.

The consumer goods company’s cost of sales increased by 22.36 percent to N29.61 billion in the first half of 2022 from N24.2 billion in the first half of 2021, claiming 67.6 percent of the firm’s total revenue in the period.

Its selling and distribution expenses also appreciated by 54.05 percent amounting to N2.28 billion in the first half of 2022 from N1.48 billion in the first half of 2021.

Marketing expenses as reported by the company surged by 32.34 percent to N8.88 billion in the period under review, a contrast from N6.71 percent reported in the first half of 2021.

Unilever reported impairment on trade receivables amounting to N52 million in the first half of 2022. Impairment on trade receivables results from the loss of value of the amounts an entity has pending claim from its customers for the delivered goods or services.

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Net finance costs amounted to N172 million in the first half of 2022, largely driven by the exchange difference in bank accounts and interests on call deposits and bank accounts which amounted to N430 million and N456 million respectively.

Its total asset grew by 23 percent to N118.99 billion in the first half of 2022 as against N96.49 billion reported by the FMCG in the corresponding period last year.

Shareholders equity amounted to N64.79 percent in the first half of 2022, up 3 percent from N62.84 billion in the first half of 2021.

Unilever’s total cash and cash equivalents for the period grew by 43.5 percent to N63 billion from N44 billion in the first half of 2021.

Cash generated from its operations however declined by 17 percent to N8.28 billion in the first half of 2022 from N7.05 billion in the first half of 2021.

The decline was due to the increase in trade receivables amounting to N3.9 billion which reduced the firm’s working capital.

The FMCG reported negative cash from investing activities totaling N182 million, largely due to the purchase of property, plant, and equipment amounting to N638.8 million during the period.

It also reported a negative cash flow from financing activities of N397 billion in the first half of 2022. This was due to dividends paid by the company amounting to N321 million and interest of N75.7 million paid during the period.

Unilever Nigeria Plc manufactures and markets consumer products primarily in the home, personal care, and food categories. The company sells products such as Omo washing powder, Key soap, Royco bouillon, Lipton tea, Blue Band margarine, Pears baby care goods, Vaseline petroleum jelly, Lux soap, and Close Up toothpaste.