Unilever Nigeria Plc has reported a pre-tax profit of N10.7 billion for the first quarter ended March 31, 2025, a remarkable 146.67% surge compared to N4.3 billion in the same period last year.
The performance signals a potential turning point for the consumer goods manufacturer, which has faced years of revenue volatility, restructuring, and operational challenges in a harsh Nigerian economic climate.
The company’s Q1 2025 revenue rose sharply to N46.9 billion, up 45.37% from N32.3 billion in Q1 2024. The result was driven by stronger sales across all three of its business categories: Food Products, Personal Care, and Beauty & Wellbeing. However, Food Products remained the backbone of the portfolio, contributing N27.5 billion, while Personal Care raked in N15.1 billion and Beauty & Wellbeing added N4.3 billion.
Unilever’s ability to grow revenue at such a scale despite inflationary pressures, rising energy costs, and foreign exchange headwinds, marks a notable reversal from the challenges of previous quarters. Between 2021 and 2023, the company battled falling margins, FX losses, shrinking consumer purchasing power, and rising competition. At one point, it announced an exit from certain categories, including homecare, as part of a strategic reset.
That reset appears to be bearing fruit. Although the cost of sales increased by 49.47% year-on-year to N28.1 billion due to high material and logistics costs, gross profit still climbed to N18.8 billion from N13.5 billion — a 39.64% improvement. The margin expansion suggests improved supply chain efficiency and stronger pricing power.
Administrative and marketing expenses rose by a modest 9.67% to N9 billion, up from N8.2 billion in Q1 2024. However, this cost discipline, coupled with stronger sales, pushed operating profit to N8.2 billion — a 115.18% jump from N3.8 billion last year.
What notably boosted the bottom line this quarter was the significant reduction in finance costs. Unilever slashed finance costs to just N172 million from N1.4 billion in Q1 2024 — an 87.71% drop. This was complemented by a 32.80% increase in finance income to N2.6 billion, reflecting improved interest earnings from call deposits and bank balances, likely aided by the high interest rate environment.
The company’s asset base also improved, rising 9.50% year-on-year to N155.09 billion, while retained earnings jumped 21.84% to N30.9 billion. These indicators underline a healthier balance sheet and stronger liquidity compared to previous years.
Unilever Nigeria’s share price closed at N43.00 on March 28, 2025, delivering a year-to-date return of 30.50%. Investors appear to be responding positively to the improved fundamentals, as confidence slowly returns to the stock after a prolonged period of underperformance.
However, uncertainties remain. Nigeria’s inflation is still in double digits, currency volatility continues to pose risks for import-heavy firms, and competition in the fast-moving consumer goods (FMCG) sector is intensifying. Analysts say Unilever’s ability to sustain its current earnings trajectory in subsequent quarters will depend on its ability to manage costs, deepen market penetration, and adapt to a still-evolving economic landscape.
However, this strong start to 2025 suggests the company is regaining its footing and could be on the path to sustained recovery.
