August 27, 2026/CSL Report
Unilever Nigeria Plc (Unilever) delivered a resilient H1 2026 performance, with Revenue increasing by 22.2% year-on-year (y/y) to ₦119.9bn, supported by broad-based growth across its portfolio, sustained brand investment and improved route-to-market execution. Food Products remained the key growth driver, with Revenue rising 31.3% y/y to ₦77.1bn, while Personal Care and Beauty & Wellbeing grew by 4.7% and 21.0%, respectively. Looking ahead, we expect continued brand investment and gradual volume recovery to support topline growth. Consequently, we forecast full year (FY) 2026 Revenue of ₦289.0bn, representing a 34.8% y/y increase.
The earnings outlook remains positive, underpinned by continued cost efficiencies and operating leverage. Gross margin improved by 2.7ppts y/y to 45.6% in H1 2026, as Revenue growth outpaced increase in Cost of Sales, while EBITDA and EBIT increased by 27.8% and 29.5%, respectively. Although higher FX losses and an elevated tax burden constrained bottom-line conversion, stronger Revenue growth and margin expansion should continue to support earnings recovery in H2. Consequently, we estimate FY 2026 PBT and PAT to increase by 42.9% y/y each to ₦73.9bn and ₦46.0bn.
We maintain a Buy recommendation on Unilever with a 12-month target price of ₦151.90/share, implying a potential upside of 33.2% relative to the last closing price of ₦114.00/share. Our valuation is based on an equal blended methodology comprising absolute and relative valuation (P/E and EV/EBITDA multiples).
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