Unilever Nigeria Plc after-tax profit for 2022 ballooned nearly ninefold due to strong revenue growth, its unaudited financial report published Tuesday showed, pushing its share price to record highs. starting October 7.
The share price of the company has jumped 9.9 percent to N12.2 at 13:19 WAT as buying orders from investors flooded Lagos’ Custom Street after the news, taking the stock to the top of the gainers table.
The local unit of British consumer goods giant Unilever Plc saw sales increase by 25.8 percent to N88.7 billion, part contributed by the home and personal care business and the rest by the food products division.
Financial income grew by nearly four-fifths to N1.8 billion, all driven by an increase in interest on phone deposits and bank accounts.
As well as increasing income, other income increased by 231.1 percent to N123.7 million, due to higher transition service agreement income from Unilever’s pact with Unilever Tea MSO Nigeria Limited after disposing of its tea business to the latter in 2021.
“The agreement will run for 15 months, during which time Unilever will provide production and sales support to Unilever Tea MSO Nigeria Limited in exchange for a fee”, the earnings report said.
Profit before tax rose to N9.9 billion from N1.9 billion a year earlier, representing a 425 percent increase.
Profit after tax scaled up by 770.7 percent to N6 billion, while profit for the period increased to N6 billion, up by 75.8 percent.
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profit margin, which measures how much revenue has become profit, stood at 6.8 percent; it was 4.83 percent the previous year.
Unilever Overseas Holdings BV Holland owns a controlling stake of 57.8 percent in Unilever Nigeria, while Unilever Overseas Holdings BV owns 18.2 percent in the company.
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