Unilever Nigeria Plc’s profit after tax for 2022 ballooned by nearly nine fold on the back of considerable growth in revenue, its unaudited financial statements issued on Tuesday showed, pushing its share price to its peak level since 7 October.
The company’s share price had jumped 9.9 per cent to N12.2 at 13:19 WAT as buy orders from investors flooded Lagos’ Custom Street following the news, taking the stock to the top of the gainers’ table.
The local unit of British consumer goods giant Unilever Plc saw sales improve by 25.8 per cent to N88.7 billion, the chunk of that contributed by its home and personal care business and the rest by its food products division.
Finance income grew by almost four-fifths to N1.8 billion, wholly driven by notable improvement in interest on call deposits and bank accounts.
Also boosting revenue, other income expanded by 231.1 per cent to N123.7 million, thanks to higher transitional service agreement income from a pact Unilever entered into with Unilever Tea MSO Nigeria Limited after the disposal of its tea business to the latter in 2021.
“The agreement will be in place for a period of 15 months, during which time Unilever would provide production and sales support to Unilever Tea MSO Nigeria Limited in exchange for a fee”, the earnings report said.
Profit before tax rose to N9.9 billion from N1.9 billion one year prior, reflecting a rise of 425 per cent.
Profit after tax scaled up by 770.7 per cent to N6 billion, while profit for the period increased to N6 billion, rising by 75.8 per cent.
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Profit margin, which measures how much of revenue has turned into profit, stood 6.8 per cent; it was 4.83 per cent a year earlier.
Unilever Overseas Holdings B.V. Holland owns a controlling stake of 57.8 per cent in Unilever Nigeria, while Unilever Overseas Holdings BV owns 18.2 per cent in the company.
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