Unilever Nigeria Plc Reports ₦7.02 Billion Q1 Profit as Revenue Hits ₦59.17 Billion

Unilever Nigeria Plc reported a profit after tax of ₦7.02 billion for the three months ended March 31, 2026, representing a 26.4 percent increase from ₦5.55 billion recorded in the corresponding period of 2025.

Revenue rose to ₦59.17 billion from ₦46.98 billion in Q1 2025, indicating a 26 percent year-on-year growth driven by improved product demand and pricing adjustments across key segments.

Cost pressures, however, remained evident as cost of sales increased to ₦32.56 billion from ₦28.12 billion.

Despite this, gross profit expanded to ₦26.61 billion, up from ₦18.85 billion in the prior period, reflecting improved margin resilience.

Operating expenses accelerated during the quarter. Marketing and administrative expenses rose sharply to ₦13.58 billion from ₦9.09 billion, while selling and distribution costs increased to ₦1.87 billion. The rise in operating costs moderated overall profitability gains.

Operating profit stood at ₦11.48 billion, compared to ₦8.27 billion in Q1 2025, representing a 38.9 percent increase.

Other income contributed ₦295.23 million, up from ₦76.89 million, while impairment write-back declined significantly to ₦26.17 million.

Net finance income dropped to ₦1.94 billion from ₦2.48 billion as finance costs surged to ₦1.40 billion from ₦172.07 million, indicating increased borrowing or higher interest rate exposure during the period.

Profit before tax rose to ₦13.42 billion, up from ₦10.75 billion, while tax expenses increased to ₦6.40 billion from ₦5.20 billion, indicating a higher effective tax burden.

Earnings per share improved to ₦1.22 from ₦0.97, reflecting stronger returns to shareholders.

On the balance sheet, total assets increased to ₦189.99 billion as at March 31, 2026, from ₦180.18 billion recorded at the end of 2025.

The growth was supported by a strong cash position of ₦114.46 billion and increased receivables and prepayments.

Total liabilities rose to ₦75.51 billion from ₦72.72 billion, driven largely by higher tax liabilities and deferred tax obligations.

Trade and other payables, however, declined to ₦44.42 billion, suggesting improved working capital management.

A closer review of the numbers indicates that while revenue and profit growth remain strong, rising operating expenses and finance costs could weigh on future margin expansion if not effectively managed.

The company’s performance reflects resilience in a challenging macroeconomic environment but underscores the importance of cost discipline as inflationary pressures persist.