October 30, 2025/Cordros Report
Unilever Nigeria Plc (UNILEVER) published its Q3-25 unaudited results today, posting an EPS of NGN1.32 (+15.3% y/y), which lifted 9M-25 EPS to NGN3.83 (+99.7% y/y). The performance was underpinned by robust revenue growth (+43.5% y/y) and marginal growth in operating expenses (+2.2% y/y), which supported sustained margin expansion and reinforced earnings resilience during the period.
UNILEVER’s revenue rose 43.5% y/y in Q3-25 (9M-25: +49.7% y/y), propelled by an effective pricing strategy and moderate volume gains. By segments, Beauty & Wellbeing delivered the strongest growth (+111.7% y/y | 25.0% of revenue), followed by Food Products (+49.1% y/y | 63.2% of revenue) as the dominant contributor, while Personal Care recorded modest gains (+15.0% y/y | 11.8% of revenue). Domestic sales advanced 52.5% y/y to NGN57.16 billion, while exports declined sharply (-93.9% y/y to NGN148.63 million) amid weaker external demand.
Cost of sales rose 52.4% y/y in Q3-25, outpacing revenue growth and compressing gross margin by 362bps y/y to 38.1% (9M-25: -14bps y/y to 41.2%). Nonetheless, EBITDA margin expanded by 334bps y/y to 21.6% (9M-25: +953bps y/y to 21.0%), reflecting the marginal increase (+2.2% y/y) in OPEX. Precisely, marketing and administrative expenses declined 0.6% y/y, moderating the OPEX margin by 745bps y/y to 18.5% in Q3-25 (9M-25: -668bps y/y to 22.3%), which underscores tighter cost control and improved overhead discipline.
The company benefited from elevated yields on call deposits (+213.5% y/y), which bolstered net finance income (+60.2% y/y). This was further supported by a significant 89.9% y/y decline in interest expenses on third-party bank loans, reflecting improved leverage efficiency and stronger cash management.
Ultimately, UNILEVER posted a profit after tax of NGN7.58 billion in Q3-25 (+15.3% y/y), despite a higher effective tax rate of 42.9% (Q3-24: 14.4%). Nonetheless, the company’s pre-tax profit rose to NGN21.98 billion in 9M-25, up from NGN11.01 billion in 9M-24, underscoring sustained earnings momentum and improved operating leverage.
Comment: We view UNILEVER’s disciplined cost management as pivotal to its sustained EBITDA margin expansion in 9M-25. Looking ahead, we expect this momentum to persist through 2025FY, supported by gradual volume normalization, festive-driven demand uplift, and favorable FX dynamics. Our estimates are under review.
