• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macros
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macros
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
Nairametrics
No Result
View All Result
Home Opinions Blurb

Unilever Post N5.6B Pat, Roe Stable At A Whopping 41%

Ugodre Obi-chukwu by Ugodre Obi-chukwu
11 years ago
in Blurb
Share on FacebookShare on TwitterShare on Linkedin

 

What happens when 100% of your current assets are financed by 100% of trade liabilities? Your damn right to have negative working capital. On a flip side which by the way is the right side, returns on equity is also likely to be very high.

 

Unilever Nigeria Plc (The Group) released its full year 2012 Audited Accounts with revenue rising 1.5% to N55.47 from N54.7billion posted at the end of 2011. Operating Profit rose slightly (16%) to N8.9billion in 2012 against N8.3billion (15%) in 2011. Profit after tax attributed to the group rose 1.5% to N5.7billion for the year. The profit after tax of N5.6billion helped steady its return on average equity to 40.73% for the year lower that 41.3% posted in 2011. Fora company to post this sort of ROAE will have to mean the business is largely financed by cheap loans or with very cheap credit such as trade payables. The latter is obviously the case here.

 

Unilever also post a  Return on Average Asset of 25.9% and turns over its inventory 4.5years annually. The company has very little long term loans preferring only overdrafts to finance working capital shortfalls helping with a cash in bank of about N1.8billion. Stats such as this can mostly be found in foreign run and owned entities and so one is not surprised.

 

Unilever has proposed a dividend payout of N1.40 per share (same with 2011) and represents a yield of about 2.6% and 100% in dividend payout ratio. In other words, the group is paying out all of its earnings this year as dividend. Unilever currently trades at N53.75 and has risen 88% in the last one year. It currently has a P.E ratio of about 30X, way above its underlying growth potential and ostensibly overvalued. But with stats like this, very few investors will not want to have this stock in their portfolio.

 

Unilever Audited Accounts as Posted on the website of the NSE

 

Tags: Unilever
Ugodre Obi-chukwu

Ugodre Obi-chukwu

Ugo Obi-Chukwu "Ugodre" is the Founder, Publisher, and Chief Analyst of Nairametrics, a leading business and financial news online platform in Nigeria. Ugo is also the Chief Editor of the Nairametrics “Blurb” Opinion pages. Follow Ugodre on Twitter @ugodre and Instagram @ugodre Email: ugodre@nairametrics.com

Comments 2

  1. Rotimi Abraham says:
    April 2, 2013 at 3:57 pm

    Good performance.

    Reply
  2. Ugometrics says:
    April 2, 2013 at 5:57 pm

    Yeah…quite expected. But the share price seem high. What do you think?

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *







NM newsletters
HFM
Glo
Kwakol
Abbey
Zenth Bank
UBA
Mega Millions

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • Tinubu to unveil corporate governance code for public institutions in Q1 2024—FRC  
  • Naira bounces back, rises to N831.47/$1 at the official market   
  • Equinor announces sale of Nigerian oil stake to Chappal Energies

Follow us on social media:

Recent News

infrastructure gaps,

Tinubu to unveil corporate governance code for public institutions in Q1 2024—FRC  

November 29, 2023
Naira, Dollar

Naira bounces back, rises to N831.47/$1 at the official market   

November 29, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macros
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Login
  • Sign Up

© 2023 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In