Unilever Nigeria Plc a leading consumer goods company in Nigeria declares in its unaudited annual financial report that it made a loss amounting to N1.59 billion in the year 2020.

This is according to the information and figures disclosed in the Company’s unaudited financial statement published by Unilever on the website of the Nigerian Stock Exchange.

The report revealed that the loss which Unilever made in 2020, was 62.3% lower than the loss it made in the preceding year 2019, as the company’s loss after tax declined from N4.22 billion in 2019 to N1.59 billion in 2020.

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Key Highlights

• Revenue increased to N61.57 billion, up by 1.34% Y-o-Y.
• Cost of sales decreased to N47.79 billion, down by 11.63% Y-o-Y.
• Gross profit increased to N13.78 billion, up by 106.52% Y-o-Y.
• Selling and distribution expenses decreased to N2.82 billion, down by 10.53% Y-o-Y.
• Marketing and administrative expenses decreased to N12.99 billion, down by 1.69% Y-o-Y.
• Impairment loss on trade receivables increased to N1.08 billion, up by 49.73% Y-o-Y.
• Other income increased to 66.99 million, up by 2.44% Y-o-Y.
• Operating loss decreased to N3.05 billion, down by 70.54% Y-o-Y.
• Finance income decreased to N1.47 billion, down by 48.39% Y-o-Y.
• Finance costs decreased to N223.29 million, down by 72.91% Y-o-Y.
• Loss for the period decreased to N1.59 billion, down by 62.32% Y-o-Y.

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Bottom line

In line with this, the revenue of the company increased by 1.34%, as revenue from the sales of tea and savoury in the food products segment of the company increased during the period under review. While sales of skincare, oral care products, fabric care, and household cleaning products declined in 2020.

However, it is important to note that Impairment loss on trade receivables, Selling and distribution expenses, as well as Marketing and administrative expenses incurred by Unilever, completely eroded Gross Profit of N13.78 billion to the tune of an Operating loss of N3.05 billion.

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This went on to impact the profitability of the company in 2020, as Unilever reported a loss of N1.59 billion, despite doing well to keep finance costs low, and by so doing, reporting a net finance income of N1.25 billion.

Multiverse Mining and Exploration Plc has projected that in the first quarter of 2021, the mining and exploration company will generate N76 million in revenue, and post a profit of N39.5 million.

These projections were made by the company in a recent earnings forecast issued by the Management, and signed by the Corporate Secretaries of the company.

Key highlights of the earnings forecast for Q1 2021

• Total revenue is projected at N76 million.
• Turnover from agency sale is projected at N1 million.
• Agency cost is s projected at N850 thousand.
• Total expenses are projected at N7.8 million.
• Operating Profit is projected at N67.3 million.
• EBIT (Earnings Before Interest and Taxation) is projected at N67.3 million.
• Interest Expense is projected at N27.8 million.
• Profit after tax is projected at N39.5 million.

Key assumptions made to support the earnings forecast and projection of the company

The earnings forecast was made on the ground that there won’t be any significant change in the economic policies of the Federal Government, while the monetary policies of the CBN would not be altered significantly.

The company also maintained that there would not be any industrial unrest that would affect its production and sales volume, while the profit of the company would not be pressured by rising costs of inputs, as prices of materials used in production shall be stable in the period under review.

Cutix Plc has projected that in the fourth quarter of its financial year 2021, its revenue will double and profit will increase by 9% to N148 million.

These projections were made by the company in a recent earnings forecast issued by the Management, and signed by the Company’s CEO and CFO.

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Key highlights of the earnings forecast for Q4 ended April 30, 2021

• Revenue to increase to N1.66billion, 100% Q-o-Q.
• Cost of Sales to increase to N1.16 billion, 70% Q-o-Q.
• Distribution, Admin & Other expenses to increase to N232.89 million, 14%% Q-o-Q.
• Other Income to remain unchanged at N2.50 million,
• Finance Charges to increase slightly to N47.38 million, 3% Q-o-Q.
• Operating income to increase to N227.83 million, 14% Q-o-Q.
• Taxation is projected at N79.74 million.
• While Profit attributable shareholders is projected at N148.10 million.

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Bottom line

The earnings forecast was made on the ground that the Nigerian economy will continue improve, as the country recovers from the impact of COVID-19. In this regard, revenue in the fourth quarter of 2021 will be slightly higher than the revenue projected in the third quarter of 2021.

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However, the increase in the cost of sales driven by the input cost will pressure profitability to the tune of N148.10 million, which is 9% higher than the profit after tax made in the corresponding quarter of 2020.