The board of Unilever Nigeria Plc, on Tuesday gave shareholders cause for cheer with the release of its unaudited result for the first three months of the year ended March 31, 2017, showing earnings per share or distributable income rose by over 50%, faster than revenue growth rate and cost of sales for the period.
The conglomerate reported sales revenue of N22.172bn, up by N5.39bn or 32.11% from the previous first quarter’s N16.782bn; with the food products business accounting for N10.49bn or 47.31% of turnover; followed by N6.033bn from the personal care business; while home care yielded N5.647bn. By geographical location, revenue for the period was primarily domestic, accounting for N21.649bn.
Cost of sales rose by N5.129bn or 47.71% from N10.749bn in the corresponding period of 2016 to N15.879bn. This left gross profit of N6.293bn, slightly more than the previous N6.032bn.
Selling and distribution expenses rose slightly from N770.28m to N947.04m. Marketing and administrative expenses dropped by N758.089m or 22.59% from the previous N3.354bn to N2.596bn, the bulk of which was the N1.834bn overhead expenses, compared with the previous first quarter’s N2.069bn; followed by brand and marketing expenses of N501.015m, down from N908.262m; just as service fees dropped to N260.833m, from N376.307m.
The company recorded N5.024m in ‘other income;’ following which operating profit rose to N2.754bn from N1.907bn.
Finance income increased from N57.179m to N149.663m, while finance cost jumped to N724.379m from N545.676m in the first quarter of 2016; resulting in profit before tax of N2.18bn, an increase by about N760.74m or 53.59% from N1.419bn.
Net profit rose by N561.686m or 53.93% to N1.603bn from N1.041bn, resulting in Earnings Per Share of 42 kobo, as against the preceding first quarter’s 28 kobo.