Unilever Nigeria records N1.17 billion FX Profit in Q1, 2024

The financial report for the first quarter of 2024 by Unilever Nigeria Plc reveals significant changes in the company’s foreign exchange revaluation, influenced by the volatile foreign exchange market in Nigeria.

Key highlights from the financial report include:

Foreign Exchange Revaluation Gain: Unilever Nigeria Plc recorded a foreign exchange revaluation gain of N1.17 billion in Q1 2024, a stark contrast to the N458.29 million loss recorded in the same quarter of 2023. This change can be attributed to the extreme volatility in Nigeria’s foreign exchange market.
Naira Depreciation: The naira experienced a significant depreciation over the one-year period, closing at N1309/$1 as of March 31, 2024, compared to N460.35/$ at the end of Q1 2023. This represents a 184.34% depreciation.
Impact on Foreign Companies: The unification of the foreign exchange market by the Central Bank of Nigeria (CBN) in June, coupled with subsequent devaluations, led to substantial foreign exchange losses for companies with exposure to foreign currency-denominated loans.
Reversal of Tide: Despite the challenging foreign exchange environment, Unilever Nigeria Plc managed to reverse the trend by recording a significant foreign exchange revaluation gain in Q1 2024.
Financial Performance:

Revenue: Unilever reported a revenue of N32.31 billion in Q1 2024.
Profit Before Tax: The company’s profit before tax stood at N4.35 billion, slightly lower than the N4.49 billion recorded in Q1 2023.
Profit After Tax: After paying taxes amounting to N1.002 billion, Unilever reported a profit of N3.35 billion in Q1 2024, marking an increase of approximately N680 million compared to the N2.67 billion recorded in Q1 2023.

In summary, Unilever Nigeria Plc navigated the challenges posed by the volatile foreign exchange market to record a positive foreign exchange revaluation gain in Q1 2024. Despite the marginal decline in revenue and profit before tax compared to the previous year, the company managed to increase its profit after tax, showcasing resilience in a challenging economic environment.