Unilever Nigeria Plc has reported a significant decline in its pre-tax profits for the second quarter of 2023, falling by 72.95% to N169.9 million. The company’s unaudited results show that it recorded an operating loss of N3.2 billion in the quarter, as costs exceeded revenues.
The challenging financial performance comes amid a 22.79% increase in the inflation rate in June 2023, which has impacted businesses and consumers alike, leading to higher costs of goods and services.
Unilever Nigeria’s losses were attributed to rising costs of sales, particularly due to the stoppage of production in the home care category and associated redundancy costs. The company also had to restructure costs and write off raw and packaging materials.
The cost of sales increased significantly to N27.11 billion compared to N16.22 billion in the same period last year, resulting in a decline in gross profit from N7.03 billion to N2.49 billion.
Overall, the pre-tax profit for the second quarter of 2023 dropped by 72.95% to N169.94 million, down from N628.28 million in the same period in 2022.
Unilever Nigeria is closely monitoring the economic landscape and will likely implement strategies to mitigate the impact of rising costs and inflation on its operations.
