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Unilever Nigeria Plc released its 2015 H1 results showing pre-tax profits dropped a whopping 94% to N86 million only.
Key Highlights
- The drop in profits was mostly due to its poor performance in the second quarter of 2015.
- Firstly revenues dropped by 7% to N13.8 billion in the second quarter of this year compared to N14.9billion in the first quarter of the year.
- Secondly, operating expenses rose 36% to N4.7billion.
- The drop in revenue and hike in opex this quarter dumped the company into an operating loss of about N75million.
- This is the first quarterly loss the company has recorded since at least 2012 when we started tracking it
- Finally, the company’s huge debt also came bearing down on earnings as the company recorded N716m in interest expenses taking half year value to N1.4billion (2014 H1: N613m)
- Unilever has been battling drop in margins and profits that started in 2012.
2015 Q2 vs 2014 Q2
| Unilever Plc | |||
| 2015 | 2015 Q1 | 2015 Q2 | %age Change |
| N’m | N’m | ||
| Income Statement | |||
| Gross Income | 14,911 | 13,811 | -7.4% |
| Cost of sales | (9,849) | (9,123) | -7.4% |
| Gross Profit | 5,062 | 4,688 | -7.4% |
| Operating Expenses | (3,490) | (4,763) | 36.5% |
| Operating Profit | 1,571 | (75) | -104.7% |
| Other (loss)/Income | 51 | 20 | -61.3% |
| Finance Cost | (757) | (716) | -5.5% |
| Profit Before Tax | 865 | (771) | -189.1% |
| Taxation | (274) | 266 | -196.9% |
| Profit after Tax | 590 | (505) | -185.5% |
| Effective Tax Rate | 32% | 34% | 8.8% |
| Indices | |||
| Outstanding Shares | 3,783.30 | 3,783.30 | |
| Gross Profit Margin | 33.9% | 33.9% | 0.00% |
| Operating Profit Margin | 10.5% | -0.5% | -2050.92% |
| Profit Margin | 4.0% | -3.7% | -208.35% |
| SGA as a %age of Gross Profit | 69.0% | 101.6% | -32.12% |
| Interest Cost as a percentage of Operating Profit | 48.2% | -959.1% |
2015 H1 vs 2014 H1
| Unilever Plc | |||
| 2014 | 2015 H1 | 2014 H1 | %age Change |
| N’m | N’m | ||
| Income Statement | |||
| Gross Income | 28,722 | 29,280 | -1.9% |
| Cost of sales | (18,972) | (18,281) | 3.8% |
| Gross Profit | 9,750 | 10,999 | -11.4% |
| Operating Expenses | (8,253) | (8,315) | -0.7% |
| Operating Profit | 1,497 | 2,684 | -44.2% |
| Other (loss)/Income | 70 | 6 | 1050.8% |
| Finance Cost | (1,473) | (613) | 140.3% |
| Profit Before Tax | 94 | 2,077 | -95.5% |
| Taxation | (8) | (613) | -98.6% |
| Profit after Tax | 86 | 1,465 | -94.1% |
| Effective Tax Rate | 9% | 29% | -69.7% |
| Balance Sheet | 2015 H1 | 2013 Q1 | %age Change |
| Overdraft & Short-term loans | 15,412 | 16,014 | -3.76% |
| Long Term Loans | 905 | 763 | 18.62% |
| Trade and Other Receivables | 8,730 | 8,544 | 2.17% |
| Trade and Other Payables | 20,238 | 15,111 | 33.93% |
| Working Capital | (15,849) | (13,286) | 19.29% |
| Inventories | 7,720 | 8,615 | -10.38% |
| Total Assets | 50,031 | 45,736 | 9.39% |
| Net Assets | 7,186 | 7,479 | -3.92% |
| Retained Earnings | 5,249 | 5,541 | -5.28% |
| Cash & Cash Equivalents | 3,799 | 1,828 | 107.82% |
| Net Cash flow from operations | 8,481 | (1,825) | -564.81% |
| Net Cash Invested | (3,569) | (3,834) | -6.91% |
| Indices | |||
| Eps (N) | 0.02 | 0.39 | -94.9% |
| Outstanding Shares | 3,783.30 | 3,783.30 | |
| Debt to Equity | 2.27 | 2.24 | 1.2% |
| Gross Profit Margin | 33.9% | 37.6% | -9.63% |
| Operating Profit Margin | 5.2% | 9.2% | -43.16% |
| Profit Margin | 0.3% | 5.0% | -94.03% |
| SGA as a %age of Gross Profit | 84.6% | 75.6% | 11.97% |
| Interest Cost as a percentage of Operating Profit | 98.4% | 22.8% | |
| Asset Turnover % | 60.0% | ||
| Return on Equity | 1.2% | 19.6% | -94.03% |
| Return on Asset | 3.1% | 5.9% | -46.74% |
| ROA Factor | 11.5 | ||
| Inventory Turnover | 2.3 | ||
| Net Asset Turnover | 3.9 |
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