Unilever Nigeria has launched its 9M unaudited monetary statements, with its meals enterprise accounting for nearly all its income growth within the first 9 months of 2026, serving to carry earnings regardless of weaker Personal Care sales.
Foods income elevated 29.8% to N123.12 billion, contributing N28.23 billion of the corporate’s N28.60 billion enhance in complete sales; nearly each extra naira of income got here from Foods.
The efficiency helped Unilever develop pre-tax profit by 21.8% to N45.58 billion.
However, the third-quarter figures reveal an uneven enterprise: While Foods continued to develop, each Personal Care and Beauty & Wellbeing recorded decrease sales.
For shareholders, the query is whether or not Foods can maintain that momentum whereas administration restores growth elsewhere.
Foods takes an even bigger share of sales
Unilever’s Foods enterprise, which includes savoury merchandise, generated N67 of each N100 in firm income, in contrast with N61 a 12 months earlier.
Its N123.12 billion in nine-month sales exceeded the mixed N60.89 billion generated by Personal Care and Beauty & Wellbeing.
- Personal Care, which incorporates oral care and deodorants, recorded income of N42.37 billion, down 3.5% from N43.92 billion. Beauty & Wellbeing, comprising skincare merchandise, grew 11.5% to N18.52 billion.
- Foods due to this fact did greater than lead growth. It additionally offset the decline in Personal Care, permitting complete income to extend 18.4% to N184.01 billion.
That strengthens the significance of Foods to Unilever’s earnings but in addition makes the efficiency of that class more and more necessary to shareholders.
The third quarter reveals a wider hole
The distinction between the companies grew to become extra pronounced within the three months ended September.
- Foods income elevated 27.2% to N46.06 billion.
- Personal Care sales fell 20.5% to N11.40 billion, whereas Beauty & Wellbeing declined 2.2% to N6.62 billion.
- Foods consequently accounted for nearly 72% of quarterly income. Its N9.86 billion enhance in sales greater than coated the mixed N3.09 billion decline within the different two classes.
Unilever nonetheless achieved general quarterly income growth of 11.8%, however the end result depended fully on Foods overcoming weak spot elsewhere.
The accounts don’t clarify how a lot of those actions got here from costs, sales volumes, or adjustments within the merchandise bought.
Foods’ growth helps carry margins
Unilever’s stronger sales additionally got here with higher margins. Revenue elevated 18.4%, whereas the price of sales rose simply 7.8%, leaving N46 in gross profit from each N100 of sales, in contrast with N41 a 12 months earlier.
- That enchancment helped soak up greater advertising spending and different bills. Operating profit elevated 26.5% to N38.54 billion, whereas profit after tax rose 20.1% to N26.40 billion.
- Foods contributed N25.79 billion, or about 67%, of reported working profit. Its significance due to this fact extends past sales: it’s also Unilever’s largest reported supply of working earnings.
Across the corporate, greater working profit accounted for about 99% of the rise in pre-tax earnings.
The enchancment got here overwhelmingly from the enterprise itself, with little extra contribution from internet finance earnings.
Resources to maintain growth and assist weaker classes
The uneven sales efficiency places administration’s funding selections in focus. Unilever must maintain Foods’ momentum whereas addressing the decline in Personal Care.
It has appreciable monetary room to take action. September’s money steadiness of N91.34 billion far exceeded N2.38 billion in mixed borrowings and lease obligations, giving administration scope to take a position with out relying closely on extra debt.
Spending on factories and gear elevated to N8.95 billion from N1.09 billion a 12 months earlier.
The spending additionally wants to supply money. Despite greater income, working money after tax fell from N32.83 billion to N10.26 billion as tax funds elevated, and extra money grew to become tied up in stock and buyer balances. Better money era would assist fund additional funding from present buying and selling.
Does the valuation go away room for uneven growth?
At the October 23 closing value of N109, Unilever’s shares had gained 51.4% because the begin of the 12 months.
- Trailing twelve-month earnings of N6.37 per share put the inventory at 17.1 instances earnings. It additionally traded 6.04 instances September’s ebook worth.
- Those multiples alone don’t set up whether or not the shares are costly, however they make sustained earnings growth necessary.
- Foods is offering that growth as we speak. A restoration in Personal Care would broaden the earnings base and scale back the strain on Foods to hold the enterprise.
For traders, the subsequent take a look at is whether or not Foods can keep its momentum whereas funding helps the weaker classes get better.
Unilever has the sources; deploying them successfully to carry earnings per share and generate more money will decide how effectively the enterprise helps its valuation.
