Foods power Unilever Nigeria’s profit growth as Personal Care sales slide

Unilever Nigeria's latest unaudited financial statements reveal that its food business drove most of its revenue growth in the first nine months of 2026, outpacing weaker sales in Personal Care and Beauty & Wellbeing categories. Food revenues climbed 29.8% to N123.12 billion, contributing N28.23 billion to the company's N28.60 billion rise in total sales.

This performance lifted pre-tax profits by 21.8% to N45.58 billion. However, the uneven business landscape highlights the challenge Unilever faces in sustaining Food's momentum while restoring growth in weaker categories. Foods, which includes savoury products, generated N67 for every N100 in company revenue, a significant increase from N61 a year earlier.

Its N123.12 billion in sales surpassed the combined N60.89 billion from Personal Care and Beauty & Wellbeing. The strong performance in Foods also led to better margins, with revenue growing 18.4% and cost of sales rising only 7.8%, resulting in N46 of gross profit for every N100 in sales. Unilever's cash reserves of N91.34 billion, far exceeding its borrowings and lease obligations, provide ample room for investment without relying on additional debt.

The company spent N8.95 billion on factories and equipment in the quarter, up from N1.09 billion the previous year. Despite higher profits, operating cash after tax fell from N32.83 billion to N10.26 billion due to increased tax payments and inventory balances. Investors will closely monitor whether Foods can maintain its growth while the company invests in weaker categories to boost overall earnings and cash generation.