Unilever Nigeria Plc. recently released its audited results for the year ended 31st December 2016 posting N69bn turnover. The Company recorded a significant leap in PAT from its 2015 position of N1.19bn to close the year with PAT of N3.07bn.
The Company’s results for the year ended 31st December 2016 shows sustained growth and resilience even under depressed economic conditions. The result shows a 17.8% increase in turnover from N59bn in December 2015 to N69bn in December 2016. A significant portion of this growth is from volume increase.
Cost of sales increased by 29.6% from N38bn for the period ended December 31 2015, to N49bn for the year ended December 31 2016, reflecting rising costs particularly raw material costs that are significantly exposed to foreign currency volatility. The cost of sales reflects an exchange revaluation loss of N1.7bn in 2016. Marketing and administrative expenses reduced by 16% from N13.1bn for year ended December 31 2015, to N11.6bn for the year ended December 31 2016, while other income grew by 60% to N124m from N77.5m in 2015
Net finance costs reduced by 40% to N1.7bn for the year ended December 31 2016, compared to N2.8bn reported for the corresponding period in 2015. The results show that net finance cost as a function of operating profit improved significantly to 29% (2015: 62%), reflecting improvements in cash management.
Profit after tax for the year ended 31st December 2016 increased significantly by 157% to N3.07bn from N1.19bn reported for the year ended 31st December 2015.
In a statement released by the company, Unilever Nigeria assured shareholders of its efforts to ensure a sustained and steady growth in the company’s operations to achieve better returns on their investments.
“Although Unilever Nigeria has not been insulated from the tough economic environment, we have remained focused on our short and long-term growth ambitions with a clear emphasis on operational intensity, cost efficiencies and growing market share across key categories”.