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 elevate 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 improve in whole sales; virtually 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 a much 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 yr 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 subsequently did greater than lead growth. It additionally offset the decline in Personal Care, permitting whole income to extend 18.4% to N184.01 billion.
That strengthens the significance of Foods to Unilever’s earnings but additionally makes the efficiency of that class more and more essential to shareholders.
The third quarter reveals a wider hole
The distinction between the companies turned 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 improve in sales greater than lined the mixed N3.09 billion decline within the different two classes.
Unilever nonetheless achieved general quarterly income growth of 11.8%, however the consequence depended completely 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 elevate 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 yr earlier.
- That enchancment helped take in larger advertising and marketing 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 subsequently extends past sales: additionally it is Unilever’s largest reported supply of working earnings.
Across the corporate, larger 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 web finance earnings.
Resources to maintain growth and help 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 stability 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 yr earlier.
The spending additionally wants to supply money. Despite larger earnings, working money after tax fell from N32.83 billion to N10.26 billion as tax funds elevated, and more cash turned tied up in stock and buyer balances. Better money era would assist fund additional funding from present buying and selling.
Does the valuation depart room for uneven growth?
At the October 23 closing worth of N109, Unilever’s shares had gained 51.4% for the reason that begin of the yr.
- Trailing twelve-month earnings of N6.37 per share put the inventory at 17.1 occasions earnings. It additionally traded 6.04 occasions September’s e book worth.
- Those multiples alone don’t set up whether or not the shares are costly, however they make sustained earnings growth essential.
- Foods is offering that growth immediately. A restoration in Personal Care would broaden the earnings base and cut back the stress on Foods to hold the enterprise.
For traders, the subsequent take a look at is whether or not Foods can preserve its momentum whereas funding helps the weaker classes get better.
Unilever has the assets; deploying them successfully to elevate earnings per share and generate more money will decide how nicely the enterprise helps its valuation.
