HALF YEAR RESULTS: UNILEVER NIGERIA's LEVER WORKING

At Unilever Nigeria PLC the lever is working far better than it did in 2015 and should make 2016 a far better year.

According to the half year report to June released this week, the recovery which actually started in 2015 has gained enough momentum to put smiles on faces.

The main game changer remains marked drop in marketing and administration expenses especially in the three months to June. In that quarter, marketing and administration costs decreased by 18.8% to N3334.9m leading to full half year drop of 4.15% to N6689.4m.

It was aided by 116.7% increase in finance income to N163.7m within the quarter for overall 62.1% rise to N220.9m for half year.

The icing was 44.4% decrease in finance charges to N894.9m driven by a higher 55.9% drop recorded in the quarter to June.

But for these, the slightly lower core revenue growth and higher increase in cost of sale during the third quarter would have led to, at best, lower profit.

Full half year core revenue had increased by 12.4% to N32277.8m dragged down abit by 12.2% growth in the third quarter.

On the other hand, cost of sale increased by 22.5% in the second quarter thus implying that as half year growth came to only 15.6%, first quarter was more under control.

Not so for selling and distribution cost which rose by 11.8% in the second quarter but ended full half year up 17.9% to N1502.4m.

Hence, Unilever Nigeria cruised home with N1487.2m profit before tax for the half year compared to only N94.1m by June 2015.

UNILEVER NIGERIA: Nm
                   Half year
                 2016.         2015
Total inc.32498.7 28858.1
Core inc.32277.8 28721.8
C of sale21924.8 18971.7
Distrib     1502.4.   1274.2
Admin.    6689.4.   6979.3
Fin. Inc.     220.9.     136.3
Fin. Cost   894.9.   1609.1
Profit.      1487.2.      94.1
Margin      4.58.        0.33

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