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UNILEVER declares N4.2bn Loss in 2019 Unaudited Result

Corporate Results	2995 VIEWS
Corporate Results
2995 VIEWS

Friday, January 24, 2020 / 3:39 PM / NSE / Header Image Credit: Unilever

Unilever Nigeria Plc released its Q4 2019 results for the period ended December 31st, 2019.

Key Highlights

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.

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Press Release from Unilever Nigeria Plc

Unilever Nigeria has released its unaudited report for the quarter ended December 2019. The Company recorded a N9.13 billion revenue in the period under review. The results reflect challenging trading conditions and the Company's decision in quarter three to prioritize tightening of credit terms and minimize exposures on trade receivables.

The result shows the Company also recorded loss after tax of N4.76bn for the quarter ended December 2019 relative to profit after tax of N2.14bn recorded for the quarter ended December 2018. The revenue of N9.13 billion was a reduction in profit compared to N21.67bn recorded for the corresponding period in 2018.

In a statement issued by the Company, the management restated their resolve not to be deterred from their aim of strengthening the Company for growth and profitability. "We remain committed to our growth ambitions and retain a positive outlook for the business in the long term, focusing more effort on growing our brand portfolio across all our product categories to achieve sustainable and profitable growth"

It was further stated that "Unilever will continue to enhance productivity and position the company to harness existing market opportunities in order to satisfy consumer needs". It would be recalled that Unilever Nigeria recently refocused its backward integration programme to drive its local content policies and empower more local farmers across Nigeria to engage and invest in producing raw material needed by the Company and continues to create jobs by empowering women and young people through its trade distribution network.

2019 Audited Report: Unilever Nigeria records N60.5billion Revenue ...restates commitment to achieve competitive growth in 2020

Unilever Nigeria has released its audited financial statements for the year ended 31 December 2019. The Company recorded Turnover of N60.5 billion in the year under review. This represents a decline compared to N92.89bn recorded for the corresponding year, 2018.

The results show the company also recorded a loss after tax of N7.42bn for the year ended 31 December 2019 relative to profit after tax of N10.55bn recorded for the comparative year 31 December 2018.

These results reflect challenging operating conditions but also the company's decision to tighten credit terms to address exposure from trade receivables and excess stock in trade in order to better position the company for innovation and a return to competitive growth. As a result, the Company is also better placed to adjust to the prevailing operating circumstances now emerging in 2020. The Corporate Affairs Director, 'Soromidayo George stated that given this current uncertainty, the organisation will continue to monitor the business environment as well as focus on its strategy to deliver sustainable growth both in the medium and long term.

The Corporate Affairs Director noted that the business acknowledged that 2019 was a challenging year for everyone, but also that there were measures taken to adjust those challenges. She reaffirmed Unilever Nigeria's commitment to support efforts to tackle the Coronavirus threat while keeping their eyes on the fundamentals of the business, supporting its brands, ensuring the integrity of the route-to-market model, and putting consumers and their needs at the heart of everything we do.

In her statement she, also, said that they were confident of the prospects of the company, based on the legacy of growth and strong Unilever brands which have over the years satisfied consumers' needs, and will continue to do so innovatively.