Unilever Nigeria Plc has announced its unaudited financial results for the first half of 2026, demonstrating significant growth in revenue and profitability. The company posted a pre-tax profit of N29.2 billion, representing a 20.79% increase compared to N24.154 billion in H1 2025.

Revenue for the period surged to N119.92 billion, up 22.2% from N98.10 billion in the previous year. This robust topline performance contributed to a profit after tax of N15.597 billion, an increase from N14.51 billion in H1 2025, with earnings per share rising to N2.72 from N2.51.

In line with its strong performance, Unilever Nigeria’s Board approved an interim dividend of N2.00 per 50 kobo ordinary share, subject to applicable withholding tax. The total interim dividend payable amounts to N11.5 billion, reflecting the company’s commitment to shareholder value.

The qualification date for the dividend is 31 July 2026, and payment to shareholders is slated for 14 August 2026.

Segmental Growth and Operational Efficiency

The company’s H1 2026 performance was primarily driven by revenue growth across its key business segments and improved operating leverage. Gross profit expanded by 30.0% year-on-year to N54.74 billion from N42.12 billion, as the cost of sales increased at a slower pace of 16.4% to N65.18 billion.

The Foods segment remained the largest contributor to revenue, generating N77.05 billion, a 31.3% year-on-year increase from N58.68 billion in H1 2025. This segment accounted for approximately 64% of total revenue during the period.

Revenue from Personal Care increased to N30.97 billion from N29.59 billion, while the Beauty & Wellbeing segment saw its revenue rise to N11.90 billion from N9.83 billion. Nigeria continued to be the dominant revenue source, contributing N117.20 billion, which is about 98% of total revenue.

Export revenue, though smaller, recorded an impressive 85.8% year-on-year increase, growing to N2.72 billion from N1.46 billion. Operating profit also saw a significant boost, rising 72.8% year-on-year to N42.12 billion from N24.36 billion, despite higher operating expenses.

Selling and distribution expenses increased to N4.77 billion from N3.00 billion, and marketing and administrative expenses rose to N26.39 billion from N21.00 billion. The faster growth in gross profit enabled the company to absorb these cost increases and deliver stronger operating profitability.

Finance income increased by 11.8% year-on-year to N6.51 billion, supported by higher interest income from call deposits and bank balances. However, this benefit was partly offset by a sharp increase in finance costs, which rose to N1.70 billion from N483.50 million, primarily due to a N1.33 billion foreign exchange loss on bank balances.

Consequently, net finance income declined to N4.82 billion from N5.34 billion. Despite the increase in operating profit, higher finance costs and taxation limited bottom-line growth, with profit before tax rising 20.8% year-on-year to N29.18 billion, and profit after tax increasing 8.3% year-on-year to N15.60 billion.

Balance Sheet and Market Reaction

Unilever Nigeria’s balance sheet remained robust in H1 2026, with total assets standing at N177.24 billion as of 30 June 2026. This represents a 1.63% decline from N180.18 billion at the end of 2025, mainly driven by a reduction in current assets.

Cash and cash equivalents fell by 12.28% to N97.15 billion from N110.75 billion, though cash remained the largest component of the company’s asset base, accounting for approximately 54.8% of total assets. Total equity stood at N104.38 billion as of 30 June 2026, a 2.9% decline from N107.46 billion at the end of 2025, primarily due to a reduction in retained earnings to N44.70 billion from N47.77 billion.

The company’s shares closed at N125.00 on 20 July 2026, gaining 0.8% from the previous close of N124.00. Following the release of the H1 2026 results, the stock maintained its closing price at N125.00 on 21 July 2026, indicating a flat reaction on the announcement day.

Unilever Nigeria’s stock has delivered strong performance across various time frames, rising 73.6% year-to-date, 61.4% over the past six months, and 116% over the past one year.

Management Outlook

Commenting on the results, Managing Director Tobi Adeniyi stated, “We delivered a strong first half in a challenging operating environment, marked by geopolitical volatility, rising input costs and pressure on consumer spending. Despite these headwinds, we continued to grow by staying focused on what we can control: serving consumers better, driving optimal distribution via route to market excellence, delivering impactful innovations, and executing with discipline.”

Adeniyi further noted that revenue grew by 22%, gross profit expanded by 30%, and gross margin improved to 45.6%, underpinned by strong brand fundamentals, disciplined operations, and route-to-market execution. He added, “The growth recorded across our portfolio reinforces our focus on serving Nigerian consumers with brands that are relevant, innovative and unmissably superior.”

Looking ahead, Adeniyi affirmed the company’s focus on winning with consumers, driving sustainable profitable growth, and building a future-fit business that delivers lasting value for all stakeholders.