Unilever Nigeria Plc kicked off 2025 with a bang doubling its Q1 profit and reporting a significant improvement in cash flow, even as operational costs remain high. The company’s performance reflects the impact of ongoing strategic realignment, strong revenue growth, and tighter cost controls.
According to BusinessDay, the fast-moving consumer goods (FMCG) giant posted a 100% year-on-year profit increase, while revenue rose 31%, driven by price adjustments and improved product distribution across Nigeria.
Unilever’s Q1 2025 Highlights
- Profit After Tax (PAT): ₦2.7 billion (↑ 100%)
- Revenue: ₦28.2 billion (↑ 31%)
- Operating Cash Flow: Positive and improving
- Cost of Sales: Still rising but outpaced by revenue growth
- Product Focus: Home care and food categories led volume gains
Cash Flow > Paper Profit
Profit tells you what a company earned, but cash flow tells you what it can spend, save, or reinvest.
Unilever’s improved cash flow means:
- Stronger ability to handle FX volatility
- Capacity to reinvest in supply chain upgrades
- More resilience against inflation-driven cost spikes
What’s Driving the Turnaround?
- Tactical Price Increases: Aligned with inflation trends but not too aggressive to hurt volume.
- Improved Supply Chain Efficiency: Cut delays and reduced input cost volatility.
- Lean Marketing & Overheads: Budget discipline improved margins without hurting brand equity.
Strategic Questions Ahead
- Will Unilever sustain margin growth if input costs spike again in H2?
- Can it leverage local sourcing to reduce FX exposure?
- Will the FMCG giant explore regional exports under AfCFTA?
Financial Juggernut Take
Unilever Nigeria isn’t just bouncing back it’s rebuilding smarter.
For dividend-seeking investors, this kind of earnings + cash flow combo is a green light.
