Unilever Nigeria Plc. recently released its Q1 2024 financial results, showing a significant uptick in revenue. Excluding its discontinued operations in the Home Care segment, the company's Revenue surged by 57.8% y/y, reaching N32.32bn compared to N20.48bn in Q1 2023. This boost was fueled by both increased volume production and adjustments to product prices. Among its product categories, Food Products emerged as the primary contributor to the company's revenue growth increasing by 36.4% y/y to N18.18bn up from N13.33bn in Q1 2023. Following the cessation of its Home Care Segment, the company's Revenue composition shifted. In Q1 2024, the Personal Care segment contributed N11.68bn, accounting for 36.1% of the company's total revenue, while the Beauty & Wellbeing segment contributed N2.45bn, representing 7.6% of the company's top line.
Unilever’s Cost-of-Sales (adjusted for depreciation) rose significantly by 77.7% y/y to N18.43bn in Q1 2024 from N10.37bn in Q1 2023, bringing Gross Profit to N13.89bn (+37.4% y/y) in Q1 2024 from N10.11bn in Q1 2023 while its Gross Profit Margin declined to 43.0% (-6.4ppts) from 49.4%. Furthermore, its total Operating Expense (adjusted for depreciation) came in higher at N9.53bn in Q1 2024 from N4.67bn in Q1 2023. Its renewed brand and marketing strategy and elevated overheads led to its Marketing and Administrative Expenses (adjusted for depreciation) increasing to N8.25bn (+112.5% y/y) in Q1 2024 from N3.88bn in the prior year. Similarly, its Selling and Distribution Expenses (adjusted for depreciation) grew to N1.28bn (+62.4% y/y) in the period from N785m in Q1 2023.
