To Get Personalised contents and be able to add items to your favourites, please Sign In or Sign Up          
 

Volatile economic environment dampens Unileverís half-year profit


News » Business
Nigeria

July.23.2014

The difficulties in the Nigerian economy such as infrastructure deficits and political instability in the North-East region have dampened Unilever Nigeria plc’s half-year results, analysis of the financial statement reveals.

For the first six months through June 2014, the Nigerian consumer goods company’s revenue fell by 1 percent to N29.28 billion, compared with N29.66 billion in the same period of the corresponding year (HY) 2013.

Unilever reported profit before tax of N2.07 billion, which represents 48 percent reduction from the N3.96 billion recorded in the preceding year.

Similarly, profit after tax shrank by 47 percent to N1.46 billion in HY 2014, compared with N2.74 billion as of HY 2013.

Consumer goods companies such as Unilever are still confronted with difficulties in the operating environment.

The poor state of roads increase the cost of transportation of both raw materials and finished goods to from the market.

Additionally, as a result of shortage of power from the electricity grid, some Fast Moving Consumable Goods Companies (FMCG) have resulted to the use of diesel, which is an expensive alternative source of generating power for the purpose of production.

Consequently, Unilever’s net margin, a measure of efficiency and profitability, declined to 5 percent in 2014, from 9 percent in 2013.

Operating expenses margin increased to 28.28 percent in HY14 from 21.94 percent as at HY 2013, while operating expenses surged by 28 percent to N8.31 billion.

Incorporated as Lever Brothers (West Africa) Limited on April 11, 1923, Unilever Nigeria plc was 90 year-old in Nigeria on April 11, 2013.

The company’s share price closed at N52.77 on July 21, 2014, on the floor of the Nigerian Stock Exchange, while market capitalisation was N199.66 billion.

Article Credit: Businessdayonline

Updated 4 Years ago
 

Find Us On Facebook

Tags:     Volatile Economic Environment Dampens     FMCG    

RELATED