Directors of food, body care and household consumer products maker, Unilever Nigeria Plc, on Thursday presented its audited result for the year ended December 31, 2016, indicating that net profit rose 159.62% higher than previous year’s figure and significantly faster than the 14.44% increase in sales revenue and despite also the 78.77% rise in tax.
Revenue from sales for the year increased by N8.555bn from N59.221bn in 2015 to N69.777bn last year, while profit after tax rose to N3.071bn, up by N1.879bn from the N1.192bn recorded in the preceding year, translating to 81 kobo Earnings Per Share, as against the previous 32 kobo, out of which the board led by Igwe Nnaemeka Achebe, the Obi of Onitsha, has recommended a dividend of N378.33m or 10 kobo per share, payable on Friday, May 12, 2017. The EPS is by far, however, lower than the N1.48 and N1.25 in 2012 and 2013 respectively.
Further breakdown of the result shows that cost of sales rose to N49.481bn from N38.174bn, following which gross profit dropped to N20.296bn from N21.047bn in the corresponding period of 2015.
Selling and distribution expenses increased to N3.151bn from N2.844bn; marketing and administrative expenses dropped to N11.464bn from N13.641bn in 2015; just as other income jumped to N124.247m from N77.506m, resulting in operating profit of N5.805bn, compared to previous year’s N4.639bn.
Finance income rose to N1.027bn from N301.889m, even as finance cost dropped to N2.726bn from N3.17bn, resulting in profit before tax of N4.106bn, as against the N1.771bn of 2016.
After tax profit stood at N3.071bn from N1.192bn, from which the directors have recommended the dividend.
According to the balance sheet, loans and borrowings soared to N20.501bn from N7.426bn.
A breakdown of the financials according to the various product segments showed that food products (which the parent company hopes to sell in the coming months) remained the biggest revenue earner, accounting for N36.398bn, or 52.16% of revenue and N3.058bn operating profit; followed by the N17.598bn or 25.22% from personal care; while N15.779bn revenue was realized from the home care products segment.
A total of N536.053m and N1.422bn was recorded as finance income and cost respectively came from food products; N232.393m and N616.528m from home care; and N259.175m and N687.586m respectively from personal care products segment.
Of the company’s total expenses of N64.096bn for the period, up from N54.659bn in 2015 raw materials and consumables accounted for N35.676bn, from N28.635bn