Unilever Nigeria Plc has delivered an impressive turnaround in 2025, posting a remarkable jump in profitability that caught the attention of investors and analysts alike.
The consumer goods giant’s profit after tax soared by 103 percent to ₦30.7 billion, fueled by solid revenue growth and more efficient cost management across its operations.
Revenue Growth Driven by Strategic Pricing and Product Mix
The company’s revenue for the year ended December 31, 2025, climbed to ₦214.7 billion, up from ₦149.5 billion in 2024.
This surge was attributed to smart price adjustments, an improved product mix, and a gradual recovery in sales volumes across key categories, despite the persistent inflationary pressures in the Nigerian economy.
Stronger Gross Profit Reflects Efficient Cost Management
While the cost of sales increased to ₦125.0 billion from ₦94.4 billion, the rise was outpaced by revenue growth.
This allowed gross profit to expand significantly to ₦89.6 billion, compared with ₦55.1 billion the previous year.
As a result, the company’s gross margin strengthened to around 42 percent, up from approximately 37 percent in 2024, reflecting better pricing discipline and more effective cost control.
Operating Profit More Than Doubles
Unilever Nigeria’s operating profit more than doubled to ₦42.7 billion from ₦18.4 billion, supported by tighter management of operating expenses relative to revenue growth.
The reversal of impairment charges on trade and other receivables also contributed to this performance.
Notably, the company recorded an impairment write-back of ₦1.1 billion in 2025, compared with a ₦1.7 billion charge in 2024, signaling improved receivables quality and stronger cash collection.
Expenses Rise Modestly Amid Expansion
Selling and distribution costs edged up slightly to ₦6.7 billion from ₦6.2 billion, while marketing and administrative expenses increased to ₦42.4 billion, broadly aligned with the scale of operations.
Despite these higher costs, operating margin expanded to nearly 20 percent, up from about 12 percent the year before.
Finance Income Strengthens Earnings
Finance income played a key role in boosting earnings, rising to ₦10.3 billion from ₦6.8 billion, while finance costs fell sharply to ₦1.2 billion from ₦2.5 billion.
This resulted in net finance income of ₦9.1 billion, more than double the ₦4.3 billion recorded in 2024, highlighting the company’s stronger balance sheet and reduced dependence on borrowing.
Profit Before Tax and Effective Tax Rate
Profit before tax jumped to ₦51.8 billion from ₦22.6 billion in 2024.
However, the company’s tax expense increased to ₦21.1 billion, bringing the effective tax rate to around 41 percent, compared with 33 percent the previous year.
Despite the higher tax burden, net profit still more than doubled, underscoring the robustness of the company’s underlying earnings.
Earnings Per Share and Dividend Outlook
Earnings per share climbed to ₦5.35, up from ₦2.64, reinforcing Unilever Nigeria’s improved earnings capacity and signaling a positive outlook for dividends.
Additionally, the company reported a positive other comprehensive income of ₦204.9 million, reversing a loss from the previous year due to favorable remeasurement of post-employment benefit obligations.
Total comprehensive income for 2025 stood at ₦30.9 billion, up from ₦14.9 billion in 2024.
Strong Finish in the Fourth Quarter
The company’s momentum carried into the final quarter, with profit for the three months ending December 31, 2025, reaching ₦8.8 billion, compared with ₦4.9 billion in the same period of 2024.
This solid year-end performance capped a strong full-year showing, reflecting resilience and strategic execution across the business.
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