The harsh operating environment had a serious hit on Unilever Plc. last year, as it posted N4.76 loss after tax; its 2019 financial statements, which was sent to the Nigerian Stock Exchange (NSE) on Thursday, has shown.
The conglomerate, which recently changed its managing director, had made N10.15 billion post-tax profit in the previous year.
The Nigerian economy has been growing sluggishly, meaning that the disposable income Nigerians has not improved even in the face of increasing prices.
This adversely impact Unilever, which deal in household items such as soaps, seasoning, creams, etc., causing its revenue dipped -33.98 per cent to N60.76 billion last year, compared to N92.03 billion recorded in the prior year.
The company finance cost only dropped -16.27 per cent to N54.09 billion against N64.60 billion in 2018, while it made 20.42 per cent less to N2.86 billion from trading in financial instrument like bond, equities, etc. than the N3.59 billion it raked in 2018, but almost double its finance cost, which was up 82.09 per cent to N824.15 billion during this period.
The company’s earnings per share declined to -N0.74 at the end of 2019 instead of N1.77 in the corresponding period in the previous year.
Meanwhile, Unilever total assets went down -18.43 per cent to N107.55 billion, on the back on its cash and bank balances, trade and other receivables and inventories which dipped -37.51 per cent, -19.00 per cent and -14.81 per cent respectively.
However, it was able to scale its liabilities by -23.35 per cent to N37.60 billion last year.