Unilever Nigeria posts 20% jump in nine-month profit, raises interim dividend fourfold

Unilever Nigeria reported an increase of 20.1 per cent in net profit for the nine months to September, compared to the corresponding period of 2025, according to the latest corporate results of the fast-moving consumer goods manufacturer released on Friday.

The improvement in earnings derived largely from a fairly stronger revenue, which climbed to N184 billion from N155.4 billion a year earlier, thanks to higher sales from the company’s food business.

The food division contributed 66.9 per cent to turnover, up from 61.1 per cent a year ago, while the two other divisions – personal care and beauty & wellbeing – contributed 23 per cent and 10.1 per cent in that order.

Unilever Nigeria, whose products include top brands like Lipton, Knorr, Close-Up, Vaseline and Pears, among others, generated 98 per cent of its revenue through domestic sales during the period, while exports accounted for the rest.

Cost of sales as a percentage of revenue dropped to 53.6 per cent from 58.8 per cent, boosting gross profit.

Marketing and administrative expenses surged by 36.6 per cent to N40.3 billion, driven by increased spending on brand and marketing.

The company sharply reduced its impairment write-back on trade and other receivables to N43.1 million from N834.9 million, softening the pressure on operating profit.

Other income advanced by 166.2 per cent to N651.7 million, helped by higher fees earned on production of tea for Lipton Teas and Infusions Plant Based Limited and proceeds from a Federal Government of Nigeria-issued promissory note.

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Profit before taxation advanced by more than one-fifth to N45.6 billion, while profit after tax rose to N26.4 billion from N22 billion.

However, total assets slightly dropped by 0.4 per cent to N179.4 billion, triggered by lower cash and cash equivalents.

In a separate announcement on Friday, the company declared an interim dividend of N2 per share, four times what it paid for the half-year period of 2025, when it distributed N0.50 per share to shareholders. The potential payout of the newly declared dividend stands at N11.5 billion.

“On Wednesday, 18 November 2026, dividends will be paid electronically to shareholders whose names appear on the Register of Members as at Friday, 30 October 2026 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts,” Unilever Nigeria said.

In March, Unilever Plc, the parent, announced it had struck a deal to merge its global foods business with McCormick & Company, Inc., subject to required regulatory approvals and the satisfaction of other customary closing conditions.

It expects the business combination to create a larger entity specialising in flavours and food products.