Foods Line and Route-to-Market Execution Drive Unilever Nigeria’s ₦119.9 Billion Topline Surge

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Consumer goods giant Unilever Nigeria Plc (NGX: UNILEVER) has released its unaudited interim financial results for the six months ended June 30, 2026, delivering top-line revenue growth across its core product lines despite input cost inflation and overhead pressures.

Gross turnover for the half-year window expanded 22.2% year-on-year to ₦119.9 billion, up from ₦98.1 billion in H1 2025. Topline performance was led by the Foods division, which surged 31.3% YoY to ₦77.1 billion, now generating 64.3% of total enterprise sales.

The Beauty & Wellbeing segment posted strong growth, expanding 21.0% YoY to ₦12.0 billion, while the Personal Care division recorded a 4.7% rise to ₦31.0 billion.

Operating Margin Expands Despite Rising Marketing and Input Costs

Cost of Goods Sold (COGS) grew 16.4% YoY to ₦65.2 billion, driven by higher raw material costs and imported ingredient pricing. However, because turnover outpaced production cost growth, gross profit expanded to ₦54.7 billion, lifting the gross profit margin by 270 basis points to 45.6% (compared to 42.9% in H1 2025).

Selling, General, and Administrative (SG&A) expenses rose 29.8% YoY to ₦31.2 billion. This was primarily driven by a 25.6% surge in marketing and administrative expenses to ₦26.4 billion, as management increased brand awareness campaigns and route-to-market investments.

Despite these higher operational outlays, disciplined cost control pushed the operating profit margin up to 20.3% from 19.2% in H1 2025.

Exchange Losses and Tax Expense Weigh on Bottom-Line Growth

Below the operating line, net finance income declined 9.8% YoY to ₦4.8 billion. Although interest earned on substantial cash deposits rose 11.8% to ₦6.5 billion, finance costs jumped 3.5x to ₦1.7 billion. This sharp rise was caused by a ₦1.3…