Unilever Nigeria Plc, released its unaudited financial result for the half year ended June 30, 2021, with improved performance, as revenue was up by 40.8 percent to N19,73 billion.
Highlights of the accounts shows that the company recorded a profit before tax of N1.04 billion, the highest in eight quarters as opposed to a loss before tax of N1.52 billion in second quarter of 2020.
Profit after tax of N1.21 billion was boosted by a tax credit of N166.14 million, translating into earning per share of 0.21 for the period under consideration. earnings were further supported by growth in finance income primarily due to the increase of N7.07 billion in cash and bank balance to N44.17 billion in second quarter of 2021 from N37.10 billion as of December 2020.
Similarly, the company recorded a net operating profit of N557.86 million, which is the highest since second quarter of 2019 compared to a net operating loss of N1.86 billion in second quarter of 2020.
However, the increase in the cost of sales reflects the impact of the devaluation in the naira given that the company currently source for c. 55% of its raw materials abroad. Gross profit also surged by 97.8% to N5.40 billion.
EBITDA turned positive during the period, with N1.40 billion as opposed to a negative N989.58 million that was recorded same period in 2020. EBITDA margin was positive at 7.1% in 2021 compare to -7.1% in 2020.
OPEX expanded moderately by 4.3% due to the decline in selling and distribution expenses which stood at -5.5% and null impairment loss on trade receivable as opposed to the N597.13 million loss recorded in same period of 2020.
Although the business could not implement a substantial price increase due to the heightened competition, market watchers believe the topline growth was driven by a gradual increase in credit sales to distributors following the substantial progress made in reducing its trade receivables between 2018 and 2020 to -82.4%.
Accordingly, trade receivable as of second quarter 2021 was N3.92 billion compared to N3.11 billion that was reported in 2020 full year.
Unilever Nigeria Plc. is principally involved in the manufacture and marketing of Foods and refreshments, Home care and Beauty and personal care products. It has manufacturing sites in Oregun, Lagos State and Agbara, Ogun State.
