Unilever declares N1.1 billion as first half profit

…as O.K. Pinnick resigns from board

Unilever Plc has declared a profit after tax of N1.1 billion for the six months ended June 30, 2016 from N85.6 million posted in prior six months, representing a 1,177.9 per cent increase.
The unaudited interim financial statements posted on The Nigerian Stock Exchange official website, showed that the group’s profit before tax also rose by 1,480 per cent to N1.5 billion from N94.1 million recorded in six months ended June 30, 2015.
Despite of a 16 percent increase in Cost of sales to N22 billion for the period ended 30th June 2016 from N19 billion recorded in the corresponding period of 2015, major contributors to the company ascent in profitability include 12.4 percent increase in revenue from N28.7 billion to N32.3 billion, 62.1 percent increase in Finance income of N220.9 million from N136.3 million recorded for the corresponding period of 2015 as well as a 44.4 percent reduction in finance cost to N894.9 million as against N1.6 billion recorded in six months ended June 30,2015.
According to the company, trading conditions remained difficult in the second quarter of 2016 with prevailing tight consumer wallets and rising costs. However, Unilever Nigeria said it “has continued to optimize its planning capabilities and demonstrate resilience in navigating the difficult operating terrain. H1 performance has been delivered in the midst of multiple challenges including foreign exchange devaluation amongst others.”
In a statement released by the company, Unilever Nigeria assured shareholders of continued focus on key business drivers to ensure sustained growth in the company’s operations to improve returns on shareholder investments.
“Although the challenges in the operating environment are yet to abate, we have continued to see sustained momentum behind recent cost and operating efficiency initiatives taken by Management.  We remain focused on driving cost & operating efficiencies, growing market share across key categories and reinvesting behind our core brands”.
The company also notified the Nigerian Stock Exchange (NSE) on the resignation of Mr. Ologbaraete Kent Pinnick from the Board of Directors of Unilever Nigeria with effect from 16 May, 2016 following the approval of the Board on 14 July, 2016.
The notification signed by Mrs. A. Ademola, Unilever Legal Director, West Africa and Cmpany Secretary, noted that Mr O.K. Pinnick was an Executive Director until his resignation, and he has moved to another role within the global Unilever organization.