Unilever Nigeria Plc. recently released audited results for the year ended 31st December 2016, shows that the company sustained its growth trajectory amid headwinds in the operating environment posting a N69billion turnover.
The Company recorded a significant leap in Profit After Tax (PAT) from its 2015 position of N1.19billion to close the year with PAT of N3.07billion.
The Company’s results for the year ended 31st December 2016 shows sustained growth and resilience even under depressed economic conditions. The result shows a 17.8 per cent increase in turnover from N59billion in December 2015 to N69billion in December 2016. A significant portion of this growth is from volume increase.
Cost of sales increased by 29.6 per cent from N38billion for the period ended December 31, 2015 to N49billion for the year ended December 31, 2016 reflecting rising costs particularly raw material costs that are significantly exposed to foreign currency volatility.
The company’s result on the cost of sales reflects an exchange revaluation loss of N1.7bn in 2016. Marketing and administrative expenses reduced by 16 per cent from N13.1billion for year ended December 31, 2015 to N11.6billion for the year ended December 31, 2016 while other income grew by 60 per cent to N124million from N77.5million in 2015.
Net finance costs reduced by 40 per cent to N1.7billion for the year ended December 31, 2016 compared to N2.8billion reported for the corresponding period in 2015. The results show that net finance cost as a function of operating profit improved significantly to 29 per cent (2015: 62%), reflecting improvements in cash management.
Profit after tax for the year ended 31st December, 2016 increased significantly by 157 per cent to N3.07billion from N1.19billion reported for the year ended 31st December 2015.
In a statement released by the company, Unilever Nigeria assured shareholders of its efforts to ensure a sustained and steady growth in the company’s operations to achieve better returns on their investments.
“Although Unilever Nigeria has not been insulated from the tough economic environment, we have remained focused on our short and long term growth ambitions with clear emphasis on operational intensity, cost efficiencies and growing market share across key categories”.