Unilever Nigeria Plc has recorded a foreign exchange revaluation gain of N1.17 billion in the first quarter of 2024.
This is according to the company’s unaudited financial result for Q1, 2024 published on the NGX.
In the corresponding quarter of 2023, the company recorded a foreign exchange revaluation loss of N458.29 million. The significant difference in the company’s foreign exchange revaluation in the first quarter stems from the volatility that has characterised the foreign exchange market in Nigeria.
Naira volatility and FX losses
The naira closed the first quarter of 2023 at N460.35/$ on the official market. However, as of March 31, 2024, it closed at N1309/$1– indicating a difference of N848.65 marking a 184.34% depreciation over a one-year period.
In the full year of 2023, the company recorded a foreign exchange loss of N4.58 billion from N1.65 billion recorded in 2022.
The unification of the foreign exchange market by the CBN in June and subsequent devaluation of the naira later in 2023 saw the naira depreciate to record levels. This led to significant foreign exchange losses for many companies with exposure to foreign currency denominated loans on their balance sheets.
In the nine months leading to September 2023, foreign companies’ subsidiaries in Nigeria recorded over N900 billion in foreign exchange revaluation losses according to an analysis by Nairametrics. However, Unilever in Q1 seem to have reversed the tide.
Recommended reading: Q1 2024 interim unaudited report: Unilever Nigeria records 58% growth in turnover
Other details of the company report
Furthermore, in the quarter under review, the company reported revenue of N32.31 billion with profit-before-tax of N4.35 billion- a marginal decline from N4.49 billion in 2023.
Also, the company paid tax of N1.002 billion for the period and had a profit of N3.35 billion in Q1. This represents an increase of around N680 million from the N2.67 billion recorded in the same period of 2023.
