Unilever Nigeria Reports N149.5bn Revenue In 2024

Unilever Nigeria Plc has recorded a strong financial performance for the year ending December 31, 2024, reporting N149.5 billion in revenue, a 43.94 percent increase from the N103.8 billion recorded in the previous year.

The company’s growth was largely driven by domestic sales, which contributed N145.6 billion, while exports accounted for N3.8 billion.

The company’s profit before tax rose to N22.6 billion, a modest 3.46 percent increase from N21.8 billion in 2023. Despite rising costs, Unilever Nigeria has maintained steady profitability and announced a final dividend of N1.25 per share (gross). Shareholders listed in the Register of Members as of April 25, 2025, will be eligible for this dividend, subject to necessary approvals and withholding tax deductions.

Unilever’s nutrition segment remained the primary revenue driver, generating N92.6 billion, which accounted for 62 percent of total sales. The personal care segment contributed N43.9 billion (29 percent), while the beauty and well-being category made up nine percent of total revenue, amounting to N12.9 billion. However, the company also faced significant cost pressures, with the cost of sales rising by 36.05 percent to N94.3 billion, up from N69.3 billion in 2023. This increase was largely attributed to higher raw material costs and the depreciation of the naira, which drove up production expenses.

Despite these challenges, Unilever Nigeria achieved a 59.8 percent growth in gross profit, which climbed from N34.5 billion to N55.1 billion. However, operating profit declined by 9.37 percent, dropping from N20.2 billion in 2023 to N18.3 billion in 2024. This was mainly due to a surge in marketing and administrative expenses, which more than doubled, reaching N29.5 billion, and selling and distribution costs, which increased by 51.74 percent to N6.2 billion. Additionally, other income declined by 33.36 percent, falling to N621.9 million, reflecting lower earnings from manufacturing service agreements and rental income.

On a more positive note, Unilever recorded a 46.1 percent increase in finance income, reaching N6.8 billion, driven by higher interest on deposits and foreign exchange gains. The company also managed to reduce finance costs by 16.44 percent, bringing them down to N2.5 billion, indicating improved cost control in its financial operations.

In terms of assets, Unilever Nigeria’s total assets grew by 21.79 percent, reaching N141.6 billion, up from N116.3 billion in 2023. Current assets totaled N116.2 billion, with cash and cash equivalents standing at N68.4 billion and inventories valued at N30.7 billion. Non-current assets amounted to N25.3 billion, largely comprising property, plant, and equipment valued at N22.3 billion.

The company’s total equity also increased to N85.1 billion, up from N74.5 billion in the previous year, reflecting a strong financial position. This growth was supported by a N56.8 billion share premium and a 71.49 percent rise in retained earnings, which climbed to N25.4 billion from N14.8 billion in 2023.

Looking ahead, Unilever Nigeria’s strong revenue growth and improved retained earnings position it well for long-term expansion. However, rising operational costs and currency fluctuations remain key challenges. As the company strengthens its market presence in nutrition, personal care, and beauty, its ability to manage expenses while sustaining profitability will be crucial for continued growth in 2025.