Unilever Nigeria’s profit rises 20 percent toN26.4bn, declares N11.5bn dividend

Unilever Nigeria Plc has reported a 20 per cent increase in net profit to N26.4 billion for the nine months ended September 30, 2026, as revenue rose to N184 billion and improved margins strengthened the consumer goods manufacturer’s profitability despite mounting pressure on household spending.

The company’s unaudited financial results showed that revenue increased by 18 percent from N155.4 billion recorded in the corresponding period of 2025, while gross profit climbed by 34 percent to N85.5 billion from N63.9 billion. Gross profit margin also improved to 46.4 percent from 41.2 percent, indicating stronger profitability at the gross level.

Operating profit rose by 27 percent during the period to N38.5 billion, compared with the previous year’s performance, while net profit advanced from N21.9 billion to N26.4 billion.

The improved earnings performance was accompanied by a dividend declaration, with the company’s board approving an interim dividend of N2.00 per ordinary share, subject to withholding tax.

The total dividend payout amounts to N11.5 billion and will be paid to shareholders whose names appear on the company’s register of members as at the close of business on October 30, 2026.

The dividend declaration highlights the company’s decision to return a portion of its earnings to shareholders while sustaining its business operations and investments.

Commenting on the results, Managing Director of Unilever Nigeria, Tobi Adeniyi, said the performance reflected the underlying strength and resilience of the business, supported by disciplined operations, effective distribution and continued investment in its brands.

He acknowledged that consumer demand came under increased pressure in the third quarter as household disposable incomes remained constrained, but said the company maintained its focus on affordability, product availability, innovation and operational efficiency.

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“Our performance in the first nine months of 2026 reflects the underlying strength and resilience of our business,” Adeniyi said.

He added that the company’s focus on delivering value to consumers and strengthening product availability helped sustain revenue growth and improve profitability despite the challenging consumer environment.

According to him, the 34 per cent increase in gross profit and 20 per cent growth in net profit demonstrate the benefits of the company’s strategy of strengthening its product portfolio, improving execution and making targeted investments in its brands.

Adeniyi said Unilever Nigeria would continue to pursue a balanced portfolio strategy, supported by accessible product innovation and focused brand investments designed to reinforce consumer preference and sustain profitable growth.

The latest results come against the backdrop of persistent pressure on Nigerian households, with constrained purchasing power presenting challenges for manufacturers of consumer goods that depend on high-volume sales across food, personal care and home care markets.

For companies operating in the fast-moving consumer goods sector, maintaining sales growth while protecting margins has become increasingly important as consumers adjust their spending patterns and prioritise essential purchases.

Unilever Nigeria’s improvement in gross margin from 41.2 per cent to 46.4 per cent suggests that the company strengthened the relationship between revenue and the direct costs of delivering its products during the nine-month period. However, the financial statement figures provided do not, on their own, establish the extent to which pricing, product mix, input costs or other operational factors contributed to the improvement.

The increase in operating profit to N38.5 billion further indicates that the company translated revenue growth into higher operating earnings, while the rise in net profit to N26.4 billion strengthened its reported bottom-line performance.

For shareholders, the interim dividend provides a direct return alongside the company’s earnings growth. The N11.5 billion payout, however, also represents a cash commitment that investors may assess alongside the company’s future investment requirements and operating cash flows.

Looking ahead, Adeniyi said the company remained confident in Nigeria’s long-term potential and would continue investing in its brands, operations and people.

“Our priority is to build on these strong fundamentals, strengthen performance across the portfolio and create enduring value for consumers, customers, shareholders and our wider stakeholder community,” he said.

The company said it remained committed to building sustainable, profitable growth while delivering value to consumers and other stakeholders.