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Unilever loses 64.51% revenue, investors part ways with firm

  • Business

Unilever posts N4.224bn loss amidst revenue crunch

Unilever lost 64.51 per cent of its revenue to expenses in 2022, as production cost grew by 14.10 per cent during the same period in review.

According to the year-end financial statement 2022 obtained by Ripples Nigeria, Unilever reported N88.72 billion turnover between January to December last year.

The revenue increased by 25.80 per cent within 12 months when compared to the N70.52 billion generated by the company in 2021.

However, much of this revenue was lost to expenses after Unilever spent N7.07 billion more on manufacturing its goods last year, as the total cost of production was put at N57.23 billion.

This means production cost gulped 64.51 per cent of the N88.72 billion revenue generated in 2022, according to Ripples Nigeria analysis. The production cost surpassed the N50.16 billion spent a year before.

Also, Unilever reported a net profit of N9.86 billion last year, which is above the N1.87 billion grossed in the corresponding period of 2021.

Read also:Nigeria’s capital market extends growth despite losses in Unilever, Lasaco

Meanwhile, during the year in review, investors dumped Unilever’s shares as they didn’t see growth prospect investing in the firm.

Analysis of the firm’s stock market performance showed that investors had low confidence in Unilever, and this caused a drop in demand for Unilever’s shares.

Due to the share dump and low demand, shareholders still holding stake in Unilever lost N12 billion from their investment in the company, as the firm’s stock value depreciated by -15.5 per cent in 2022.

During the same period, Unilever’s market valuation fell to N66.81 billion at the end of last year, from N79.10 billion it closed 2021 with.

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