Unilever’s annual profit hits record N31 billion amid sales growth

Consumer goods manufacturer Unilever Nigeria Plc more than doubled its net profit for 2025 to N30.7 billion, its peak level ever, aided by a reasonable leap in revenue, according to its unaudited financial report released on Friday.

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The producer of famous consumer brands, including Closeup, Vaseline, Blue Band, Lipton and Knorr, whose after-tax profit dipped in 2024 amid cost pressures, recorded a 103 per cent improvement in bottom line this time around, thanks to a marked growth across its major revenue sources.

Turnover climbed 43.6 per cent to N214.7 billion, boosted by increased revenue from its foods, personal care and beauty & wellbeing business segments.

Exports, which contributed N3.9 billion to sales in 2024, fell to N2.5 billion, accounting for 1.2 per cent of revenue.

The local unit of British multinational consumer goods company Unilever Plc discontinued production of some of its home care and skin-cleansing brands, including Sunlight, Lux and Omo in 2023, citing strategies aimed at making its Nigerian operation competitive and profitable.

Unilever Nigeria is increasingly turning to local sourcing, which now accounts for more than 50 per cent of its raw material costs, following foreign exchange pressures on its operations in recent years.

Selling and distribution expenses marginally rose by 7.4 per cent to N6.7 billion in the period under review, while marketing and administrative costs advanced by 43.6 per cent to N42.4 billion, driven by a surge in overheads.

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Finance income grew by more than half to N10.3 billion, helped by a considerable increase in interest on call deposits and bank accounts.

Boosting earnings, the company cut finance costs by 53.3 per cent to N1.2 billion as it sharply reduced interest payments on third-party bank loans.

Profit before tax jumped to N51.8 billion from N22.6 billion a year ago, while profit for the period advanced to N30.7 billion from N15.1 billion. Total assets stood at N178.9 billion, up from N141.6 billion as of December 2024.

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The company announced an interim dividend of N0.50 last July, its first in more than a decade.

“In FY’26, we expect UNILEVER to declare a total dividend of N4.14, which translates to a dividend yield of 6.0% at the current market price,” analysts at the investment bank Cardinal Stone said in a research note last November.