The revenue of Unilever Nigeria Plc, a fast-moving consumer goods company, rose to N97.43 billion last year from N64.64 billion in 2022, according to the company’s latest unaudited financial statement.
The company’s after-tax profit also surged to N8.54 billion from N4.47 billion. The increase can be attributed to improved cost margins and an uptick in exports,the company says.
A breakdown of the statement showed that export revenue rose by 145.9 percent to N2.68 billion. It reported a loss from discontinued operations of N3.73 billion, up from N1.49 billion in 2022.
On March 17, 2023, the company announced that it would exit the homecare and skin cleansing categories in December.
“Subsequent to the company’s exit from the Home Care and Skin Cleansing categories, the factory buildings have been leased to a third party for a duration of 10 years, with annual rental payments,” the company said in its financial statement.
It said income from operating leases, where the company serves as the lessor, is recognised in the income statement using a straight-line basis over the entire lease term.
Finance income rose to N17.13 billion from N9.11 billion, primarily due to interest on call deposits and bank accounts.
Its marketing and administrative expenses reduced to N13.33 billion from N14.12 billion on the back of a decline in royalties.
However, selling and distribution costs increased to N29.87 billion from N26.33 billion.
Other income increased to N986.9 million from N161.85 million, driven by promissory notes.
“Included under other income is the income derived from a discounted promissory note issued by the Federal Government of Nigeria, pertaining to prior-period Export Expansion Grants. A total amount of N616 million was discounted,” the company said.
The net cash flow from operating activities stood at N2.69 billion, down from N12.03 billion.
Net cash flows from investing activities was N1.24 billion, while net cash used in financing activities incurred was N7.27 billion.
The cash and cash equivalents at the end of the period declined to N56.61 billion from N66.32 billion primarily due to a reduction in fixed deposits.