Unilever Q2 Profit Dips By 94% | Independent Newspapers Limited
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Unilever Q2 Profit Dips By 94%

Posted: Jul 25, 2015 at 1:27 am   /   by   /   comments (0)

 By Bamidele Ogunwusi  – Lagos


 Things are not looking good for consumer goods group, Unilever Nigeria, as figures coming from its financial statements have been nose-diving in recent time.

The company, in its half year unaudited financial result ended June 30, 2014, posted a drop in profit after tax from N1.464 billion in the corresponding period of 2014 to N85.573 million, representing a drop of N1.379 billion or 94.15 per cent.

Revenue  also went down by 2 per cent from N29.280 billion to N28.721 billion, financial income rose by 110 per cent from N64.851 billion to N136.276 billion, profit before tax  dropped to N94.070 billion from N2.077 billion, representing a drop of 95 per cent, basic earnings per share stood at 0.02 kobo from  0.39 kobo reported in 2014.

The negative trend started with the full year 2014 financial results where a dividend of 10 kobo was paid to its shareholders. The trend grew worst in the first quarter of 2015 when the company’s pre and post tax profits dropped by 21 per cent each, a situation that simultaneously cut basic earnings per share by four kobo from 20 kobo in first quarter 2014 to 16 kobo in first quarter 2015.

Sales rose to N14.91 billion in first quarter 2015 as against N13.83 billion recorded in comparable period of 2014. Financial charges jumped by 114 per cent from N381.6 million in first quarter 2014 to N817.91 million in first quarter 2015. With this, profit before tax dropped from N1.09 billion to N864.74 million while profit after tax slipped by same margin from N750.63 million to N590.45 million.

Key extracts of the audited report and accounts of Unilever Nigeria for the year ended December 31, 2014 showed declines in the top-line and the bottom-line. While sales were tepid, the bottom-line performance was however worsened by significant increase in finance charges.