• Wednesday, May 22, 2024
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Naira devaluation lifts Unilever’s export revenue to 7yr high

Unilever exports business soar, revenue hits 5-year high

Unilever, the British multinational consumer goods firm, reported its highest revenue in seven years for the 9-month period of 2023, with export revenue rising by 101 percent thanks to the 40 percent devaluation of the naira in June.

Export revenue amounted to N2.03 billion from N0.99 billion in the same period in 2022. Revenue from Nigeria also increased, reaching N79.54 billion from N63.78 billion in the same period the previous year.

The company’s revenue for the period amounted to N81.58 billion, up from N64.77 billion in the same period of 2022.

Unilever’s revenue from its food products business was N43.1 billion, while its revenue from the home care segment was N38.3 billion. However, the company has officially halted the production and sale of its home care brands within Nigeria.

Read also: Unilever Nigeria grows Q3 turnover by 26%

“Following the announcement made on 17th March 2023 by Unilever Nigeria Plc to exit the home care and skin cleansing category. The production for the home care category ceased in June 2023 and sales ceased in September 2023,” the statement reads.

The cessation of production is in accordance with Unilever’s choice made on March 17, 2023, to terminate its participation in the home care and skin cleansing sector in Nigeria, including well-known brands such as OMO, Sunlight, and Lux.

“The financial reporting is still being assessed and will be fully accounted for by year-end reporting. The production and sale for the skin cleansing category have been extended to December 2023” Unilever added.

In terms of profitability, Unilever reported a loss after tax of N1.67 billion during the 9-month period, from a loss of N348 million in the same period of 2022.

Read also: Unilever Nigeria records 24% turnover growth

However, the company reported a loss after tax of N1.09 billion in the third quarter of 2023, from a loss of N2.25 billion in the same period of 2022.

This negative performance was influenced by increased borrowing costs and the impact of the naira devaluation, resulting in revaluation losses and restructuring costs.

The impact of the naira devaluation showed Unilever recorded a jump in revaluation loss of N6.297 billion in the quarter under review from N406.69 million recorded in the same quarter of 2022 and also posted a restructuring cost of N3.27 billion compared to N519.69 million in the same quarter of 2022.

According to Unilever, the revaluation loss arose from foreign currencies-denominated balances regarding trade loans.

Read also: Unilever Nigeria board assures shareholders of profitability, growth

Unilever’s cash flows for the first nine months of 2023 were as follows: Net cash flow generated from operating activities amounted to N6.71 billion, Net cash flows from investing activities amounted to N1.4 billion and Net cash used in financing activities recorded a loss in the period under review amounting to N624 million.

Cash and cash equivalents at the end of the period amounted to N73.8 billion from N61.5 billion recorded in the same period under review.

The company also disclosed on Friday that it had considered and approved the resignation of the Obi of Onitsha, Nnaemeka Achebe, as a non-executive Director and Chairman of the Board, effective December 31, 2023.