Unilever CI Posts 109% Profit Growth in 2023 Despite Revenue Decline

AFRICAN STOCKS AND FINANCESeptember 12, 2024 at 8:04 AM UTC

TLDR

Unilever CI's Ivorian subsidiary reports a 109.27% increase in net profit, reaching 640.34 million FCFA in 2023.
Despite a 4.13% decline in turnover, the company attributes its profitability to a remarkable 731.74% surge in added value.
Gross operating surplus and operating results also saw significant jumps, increasing by 153.38% and 136.99% respectively.

The Ivorian subsidiary of Unilever Group posted a net profit of 640.34 million FCFA ($1.07 million) in 2023, marking a 109.27% increase from the previous year.

This is a stark contrast to the 6.38 billion FCFA loss Unilever CI (UNLC) recorded in 2022 and the profitability comes despite a 4.13% decline in turnover to 34.68 billion FCFA, down from 36.18 billion FCFA the year before.

The company's improved financial performance is attributed to a 731.74% surge in added value, which rose to 10.28 billion FCFA from 1.24 billion FCFA in 2022. Gross operating surplus jumped 153.38% to 3.34 billion FCFA, while the operating result increased 136.99% to 1.57 billion FCFA.

Key Takeaways

Unilever CI's return to profitability in 2023, following its first profit in eleven years in 2021, demonstrates the company's ability to recover from significant losses. The notable profit growth, driven by a surge in added value and improved operating results, comes despite a decline in revenue. However, the company’s negative equity signals the need for capital restructuring to strengthen its financial position and ensure sustainable growth. Management has yet to provide clarity on dividend distribution plans.

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