Unilever Nigeria Plc clawed its way back to profitability in 2021, its unaudited financial report showed on Thursday, a major rebound after its back to back loss in 2019 and 2020.
Unilever built the tremendous comeback on expanding sales by 35.1 per cent compared to 2020, which means revenue climbed to N70.5 billion, the bulk of it coming from its home and personal care products.
The company’s shares appreciated by 7.28 per cent on Thursday in Lagos following the news.
Helping earnings, the consumer goods firm cut the cash provision for loss likely to arise from trade and intercompany receivables by as much as 90.4 per cent.
Profit before tax stood at N2.1 billion in contrast to a loss of N4.4 billion a year before according to the document obtained from the Nigerian Exchange Limited.
Last year, the Nigerian unit of British-owned Unilever Group sold its tea business in conformity to a global restructuring plan across the group, and ploughed the profit – N2.2 billion – into its operations.
That lifted the overall profit to N3.5 billion relative to 2020, when a loss of N4 billion was incurred.
Profit margin, which represents how much of revenue has translated to profit, stood at 4.9 per cent.
Unilever teed off operations in Nigeria in 1923 as a business, trading soap using the name Lever Brothers West Africa. It acquired a tea business (Lipton) in 1985 in addition to its product line.
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