Unilever Nigeria Plc has posted a strong financial performance for the first quarter of 2026, reporting a profit after tax of ₦7.02 billion, a 26.4 percent increase from ₦5.55 billion in the same period of 2025. Revenue for the three months ended March 31, 2026, rose to ₦59.17 billion, up 26 percent year-on-year, driven by higher product demand and strategic pricing adjustments across its core segments. The company’s improved financial results reflect continued consumer confidence in its brands despite ongoing economic challenges in Nigeria.
Gross profit expanded significantly to ₦26.61 billion, up from ₦18.85 billion in Q1 2025, indicating better margin resilience despite rising cost of sales, which climbed to ₦32.56 billion from ₦28.12 billion. This increase in cost of sales highlights persistent inflationary pressures affecting input costs and supply chain operations. However, the company managed to maintain profitability through operational efficiency and pricing strategies.
Operating expenses saw a notable rise during the quarter. Marketing and administrative costs jumped to ₦13.58 billion from ₦9.09 billion, while selling and distribution expenses increased to ₦1.87 billion. These higher costs moderated the overall profitability gains, even as operating profit surged by 38.9 percent to ₦11.48 billion from ₦8.27 billion in the prior year. Other income also improved to ₦295.23 million, up from ₦76.89 million, though impairment write-backs fell sharply to ₦26.17 million.
Net finance income declined to ₦1.94 billion from ₦2.48 billion, primarily due to a surge in finance costs to ₦1.40 billion from ₦172.07 million, signaling higher borrowing or increased interest rate exposure. Profit before tax rose to ₦13.42 billion, up from ₦10.75 billion, while tax expenses increased to ₦6.40 billion from ₦5.20 billion, reflecting a higher effective tax burden. Earnings per share improved to ₦1.22 from ₦0.97, indicating stronger returns for shareholders.
On the balance sheet, total assets grew to ₦189.99 billion as of March 31, 2026, from ₦180.18 billion at the end of 2025, supported by a robust cash position of ₦114.46 billion and increased receivables and prepayments. Total liabilities rose to ₦75.51 billion from ₦72.72 billion, mainly due to higher tax liabilities and deferred tax obligations. Trade and other payables, however, decreased to ₦44.42 billion, suggesting improved working capital management.
While Unilever Nigeria’s financial performance remains resilient, rising operating and finance costs could challenge future margin expansion if not carefully managed. The company’s results underscore its ability to navigate a difficult macroeconomic environment, but sustained cost discipline will be crucial as inflationary pressures continue to affect the Nigerian economy. Going forward, Unilever Nigeria’s focus on operational efficiency and strategic pricing will likely shape its ability to maintain growth momentum.
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