…EBITDA and EBIT grew by 106.7% y/y and 82.8% y/y, respectively, supported by impairment write-back on trade receivables (N5.51 billion vs impairment loss of N2.80 million in Q4-22).
…The company also reported EPS from continuing operations of N1.20 (Q4-22:N1.10), bringing 2023FY EPS from continuing operations to N1.49 (2022FY EPS: N1.04).
… Profit from continuing operations grew by 65.4% y/y to NGN8.34 billion in Q4-23 (2023FY: N12.27 billion | 2022FY: N5.96 billion).
MON, JAN 22 2024-theGBJournal|Unilever Nigeria Plc (UNILEVER) published its 2023FY unaudited results on last Friday reporting Q4-23 revenue increase of 63.7% y/y (2023FY: +50.7% y/y).
The revenue groth is driven by significant improvements in the Food Products (+65.9% y/y | 66.3% of revenue) and Beauty & Wellbeing and Personal Care (+59.6% y/y | 33.7% of revenue) segments.
The company also reported EPS from continuing operations of N1.20 (Q4-22:N1.10), bringing 2023FY EPS from continuing operations to N1.49 (2022FY EPS: N1.04).
The growth in earnings in the period was supported by impairment write-back on trade receivables (N5.51 billion vs impairment loss of N2.80 million in Q4-22).
Analysts at Cordros Research believe the festive-induced consumption improved demand and supported the expansion in revenue amid price increases across UNILEVER’s product portfolio.
On price increases, findings by Cordros reveal that the company’s product prices rose by c.23.9%.
”Furthermore, we believe the company’s strategic move towards digitization and the introduction of telesales supported sales growth in the period. Despite a marginal contribution to revenue growth (+2.1%), we also note a substantial increase in export sales (+125.8% y/y) in the period.”
The company’s gross margin for the quarter declined significantly by 283bps to 35.2% in Q4-23 (2023FY: -101bps to 30.7%), reflective of the surge in cost of sales (+190.5% y/y).
This increase is attributed to the impact of domestic inflationary pressures on raw material costs (given a 50.0% reliance on local sourcing); and revaluation loss arising from foreign currencies denominated balances (+24.6x y/y).
Nonetheless, EBITDA and EBIT grew by 106.7% y/y and 82.8% y/y, respectively, supported by impairment write-back on trade receivables (N5.51 billion vs impairment loss of N2.80 million in Q4-22).
UNILEVER reported a net finance cost of N2.62 billion for Q4-23 (vs net finance income of NGN1.06 billion in Q4-22), owing to a high finance cost print (Q4-23: N3.96 billion vs finance income of N318.28 million in Q4-22) arising from interest on third party bank loans.
For 2023FY, net finance income printed N269.82 million (2022FY: N194.91 million) on the back of higher finance income (+156.0% y/y) from a substantial cash balance of N56.61 billion.
Overall, profit from continuing operations grew by 65.4% y/y to NGN8.34 billion in Q4-23 (2023FY: N12.27 billion | 2022FY: N5.96 billion).
After adjusting for the loss from discontinued operations (N1.46 billion vs profit from discontinued operations of N1.30 billion in Q4-22), UNILEVER’s profit after tax increased by 8.4% y/y to N6.87 billion in Q4-23 (2023FY: +91.3% y/y to N8.54 billion).
The company exited the Home and Cleansing segment in December 2023.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
