August 18, 2025/CSL Research
Recent H1 2025 earnings release by Unilever Nigeria Plc showed Revenue growth of 53.5% year-on-year (y/y) to ₦98.10 billion, up from ₦63.91 billion in H1 2024. The strong performance was driven by growth across all Revenue segments, reflecting the positive impact of Unilever’s intensified brand marketing efforts over the past year:
• Food product segment: ₦58.68 billion (+58.1% y/y from ₦37.13 billion in H1 2024)
• Personal care segment: Up 33.2% y/y to ₦29.59 billion from ₦22.21 billion in H1 2024
• Beauty & wellbeing segment: Surged 114.9% y/y to ₦9.84 billion from ₦4.58 billion in H1 2024.
Operating Profit grew by 444.3% y/y to ₦18.81bn in H1 2025 (H1 2024: ₦3.46bn), driven primarily by strong Revenue growth and a moderation in Operating Expenses. Consequently, Profit After Tax rose to ₦14.41bn, compared to ₦4.44bn in H1 2024.
Unilever’s FY 2025 Revenue is projected to rise by 53.5% y/y to ₦229.52bn (FY 2024: ₦149.52bn), supported by product price increases, stronger marketing initiatives, and a gradual recovery in volume sales. With cost pressures expected to remain contained, Gross Profit is forecast to grow to ₦89.51bn (FY 2024: ₦55.15bn). Consequently, Operating Profit is projected to reach ₦38.49bn (FY 2024: ₦18.36bn), while Profit Before Tax is expected to more than double to ₦43.78bn (FY 2024: ₦22.65bn).
At the current EV/EBITDA of 9.56x, Unilever trades almost at par with the Middle East and Africa (MEA) peer average of 10.34x. We have downgraded our rating to a HOLD (prior: BUY), with a revised target price of ₦74.21/share (previous: ₦53.54/share).
To read full report, click on the link below
UNILEVER H1 2025 Company Update.pdf
