Unilever Nigeria Plc published its Full-year (FY) 2019 earnings report indicating a loss of N4.22 billion vs N10.15 billion profit in the corresponding period of the previous year.
- Revenue declined by -34% to N60.76bn from N92.03bn in the previous quarter.
- Loss before tax stood at -N8.32bn.
- Loss after tax stood at -N4.22bn.
- Net Assets also declined by -15.5% to N69.9bn from N82.8bn.
Also, there is a drastic slowdown in topline to settle at N60.76 billion against N92.03 billion recorded in FY 2018.
Furthermore, Cost of sales (COGs) dipped to print N54.09 billion against N64.60 billion recorded in FY 2018, however, COS declined at a slower pace than topline, hence, we witnessed gross profit thin-out by 75.67% to record N6.672 billion vs N27.427 billion recorded in the corresponding period of 2018.
Moving on, operating profit recorded a loss as the company could not make enough sales to cover the total operating expense. Finance income came in lower by 20.42% while finance cost spiked by 82.30%, consequently recording a loss before tax of N8.32 billion. The tax credit of N4.10 billion cushioned the loss for the period to N4.22 billion, 141.62% decline when juxtaposed to N10.15 billion profit recorded in FY 2018.
The report indicates the continued struggle for Unilever to increase its sales in light of increased competition in the Fast Moving Consumer Goods (FMCG) sector.
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