Unilever Reviews Fiscal Strategy as Profit Slumps 49%

Unilever Nigeria on Tuesday said the company’s top line and bottom line dropped due to the devaluation of naira and collapse of crude oil prices.

The company’s profit for the year fell 48.9 per cent to N2.42 billion in the review period, from N4.72 billion posted in the corresponding period of 2013.

Speaking at the company’s Annual General Meeting in Lagos, the Chairman, Mr. Nnaemeka Achebe, who is also the Obi of Onitsha, noted that business environment will be more daunting in the current financial year if the collapse of crude oil prices, high foreign exchange rate and overall political environment, are anything to go by.

But having taking significant learnings from 2014, he said, the company will be more aggressive about driving down costs and actively finding savings throughout all facet of its value chain.

According to him, the company’s ambition is to continue to deliver value to all shareholders and positively affect its commitment by leveraging on sustainable living plan.

He said, “The Company exposed to foreign exchange risk arising from various currencies exposures, primarily with respect to the Euro. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities.

“The company managed the risk mainly by hedging foreign exchange currency contracts. At December 31, 2014, the unhedged financial assets and financial liabilities amounted to N1.2 billion, compared to N3.9 billion in the same period of 2013.”

Analysis of the result showed that its revenue stood at N55.8 billion, from N60.0 billion recorded in the corresponding period of 2013.