Shares of Unilever Nigeria Plc have soared 28% week-to-date in the trading week starting on November 18, 2024, pushing the year-to-date performance to over 95%.
The rise comes on the heels of the company’s Q3 financial results, announced on October 21, 2024, which reported a pre-tax profit of N13.96 billion for the nine-month period ending September 30, reflecting a 31% year-on-year increase.
Additionally, Unilever Nigeria reported a 49% year-over-year growth in revenue, up from N71 billion in the same period of 2023 to N103 billion in 2024.
Since the financial results were released, the stock has gained over 50%, with this week’s trading continuing the upward momentum.
Market trend:
Unilever Nigeria began the year trading at N14.80 per share. Driven by a significant market volume of 65 million shares, the stock gained momentum early on, closing January at N18.65—a notable increase from its starting price.
- February saw a decline, but the stock rebounded in March before dropping to N14.75 in April.
- In June, the stock began to recover, aided by a market volume of 12.7 million shares. Despite a slight dip in July, the stock posted three consecutive months of gains from August to October, closing at N23.00 per share.
After releasing its Q3 results in late October, Unilever Nigeria’s stock maintained its upward momentum into November, reaching N29.60 as of market open on November 22, 2024. This rise has pushed its year-to-date performance to over 95%, supported by sustained market activity.
Likely drivers of bullish sentiment
Unilever Nigeria’s recent market performance is likely driven by notable improvements in its financial results and increased trading activity.
- The company reported a modest 7% year-over-year growth in half-year pre-tax profits for June, increasing to N6.3 billion in 2024 from N5.9 billion in 2023.
- Revenue also saw a significant 41% rise, reaching N63.9 billion compared to N45.4 billion during the same period the previous year, according to its unaudited interim financial statement for H1 2024.
- In June, heightened trading activity saw the stock record a market volume of 12.7 million shares, closing at N18.00, up from N15.05 in May. While July brought a slight decline, the stock rebounded and closed in positive territory from August to October.
- The release of Q3 results in late October appears to have boosted the stock’s upward momentum, with the company reporting revenue of N103.8 billion, a 46% year-over-year increase compared to N71.2 billion in Q3 2023.
These results have likely contributed to the stock’s sustained growth, pushing its year-to-date performance to over 95% as of market open on November 22.
Comments from the Managing Director:
Commenting on the results, Managing Director Tim Kleinebenne stated:
“The consistency in our quarter-on-quarter growth and sustained performance is a clear testament to our commitment under the Growth Action Plan (GAP). We remain dedicated to serving consumers with our top brands, ensuring they meet their daily needs for improved health and hygiene.”
He further added:
“Unilever Nigeria is pleased with the progress we’ve achieved, driven by our focus on operational efficiency, cost optimization, purposeful brands, and expanding market share across key categories.”
