Unilever Nigeria’s annual loss narrows to N3.97bn

Unilever Nigeria Plc has reported a loss ofN3.97 billion for the financial year 2020, compared to N7.42 billion a year earlier.

The company posted an operating loss of N6.07 billion last year, compared with an operating profit of N11.76 billion in 2019, according to its financial statements.

Its revenue, however, rose to N61.96 billion in 2020 from N60.49 billion in the previous year.

The Chairman, Unilever Nigeria, His Majesty Nnaemeka Achebe, Obi of Onitsha, said despite a challenging year for the economy, with subdued growth and high levels of volatility undermining confidence in many parts of the world, Unilever Nigeria’s fundamentals held strong.

“Our 2020 results are reflective of the intentional focus on driving operational efficiency and cost optimisation,” he said.

He said several factors impacted the profitability of the consumer sector, including Unilever Nigeria, such as prolonged port congestion, forex devaluation and scarcity, border closure, sluggish economic recovery, tighter consumer spending, and additional costs levelled on businesses by the COVID-19 pandemic.

He said additional impairment was recognised mainly on receivables from related parties that were in a net current liability position, adding that expected repayment plan from these related parties during the year was impacted by the COVID-19 crises.

The chairman said, “Adequate plans have been put in place to ensure recovery of these related party balances. With a focus on increasing revenue, protecting cash and ensuring our operations are efficiently run.

“Our company’s 2020 performance reinforces that the Unilever growth fundamentals drove a marked improvement in our operational excellence and was a key factor behind our improved competitiveness.

“These fundamentals have now been widely adopted across the business with increased rigour. Our business is emerging as a sturdier consumer-centric organisation better fit to compete for consumers of the future.”