Unilever Nigeria Plc a leading consumer goods company in Nigeria declares in its unaudited annual financial report that it made a loss amounting to N1.59 billion in the year 2020.
This is according to the information and figures disclosed in the Company’s unaudited financial statement published by Unilever on the website of the Nigerian Stock Exchange.
The report revealed that the loss which Unilever made in 2020, was 62.3% lower than the loss it made in the preceding year 2019, as the company’s loss after tax declined from N4.22 billion in 2019 to N1.59 billion in 2020.
Revenue increased to N61.57 billion, up by 1.34% Y-o-Y.
Cost of sales decreased to N47.79 billion, down by 11.63% Y-o-Y.
Gross profit increased to N13.78 billion, up by 106.52% Y-o-Y.
Selling and distribution expenses decreased to N2.82 billion, down by 10.53% Y-o-Y.
Marketing and administrative expenses decreased to N12.99 billion, down by 1.69% Y-o-Y.
Impairment loss on trade receivables increased to N1.08 billion, up by 49.73% Y-o-Y.
Other income increased to 66.99 million, up by 2.44% Y-o-Y.
Operating loss decreased to N3.05 billion, down by 70.54% Y-o-Y.
Finance income decreased to N1.47 billion, down by 48.39% Y-o-Y.
Finance costs decreased to N223.29 million, down by 72.91% Y-o-Y.
Loss for the period decreased to N1.59 billion, down by 62.32% Y-o-Y.
In line with this, the revenue of the company increased by 1.34%, as revenue from the sales of tea and savoury in the food products segment of the company increased during the period under review. While sales of skincare, oral care products, fabric care, and household cleaning products declined in 2020.
However, it is important to note that Impairment loss on trade receivables, Selling and distribution expenses, as well as Marketing and administrative expenses incurred by Unilever, completely eroded Gross Profit of N13.78 billion to the tune of an Operating loss of N3.05 billion.
This went on to impact the profitability of the company in 2020, as Unilever reported a loss of N1.59 billion, despite doing well to keep finance costs low, and by so doing, reporting a net finance income of N1.25 billion.