Unilever Nigeria has released its 9M unaudited financial statements, with its food business accounting for almost all its revenue growth in the first nine months of 2026, helping lift earnings despite weaker Personal Care sales.
Foods revenue increased 29.8% to N123.12 billion, contributing N28.23 billion of the company’s N28.60 billion increase in total sales; almost every additional naira of revenue came from Foods.
The performance helped Unilever grow pre-tax profit by 21.8% to N45.58 billion.
However, the third-quarter figures reveal an uneven business: While Foods continued to grow, both Personal Care and Beauty & Wellbeing recorded lower sales.
For shareholders, the question is whether Foods can sustain that momentum while management restores growth elsewhere.
Unilever’s Foods business, which comprises savoury products, generated N67 of every N100 in company revenue, compared with N61 a year earlier.
Its N123.12 billion in nine-month sales exceeded the combined N60.89 billion generated by Personal Care and Beauty & Wellbeing.
That strengthens the importance of Foods to Unilever’s earnings but also makes the performance of that category increasingly important to shareholders.
The difference between the businesses became more pronounced in the three months ended September.
Unilever still achieved overall quarterly revenue growth of 11.8%, but the result depended entirely on Foods overcoming weakness elsewhere.
The accounts do not explain how much of these movements came from prices, sales volumes, or changes in the products sold.
Unilever’s stronger sales also came with better margins. Revenue increased 18.4%, while the cost of sales rose just 7.8%, leaving N46 in gross profit from every N100 of sales, compared with N41 a year earlier.
Across the company, higher operating profit accounted for about 99% of the increase in pre-tax earnings.
The improvement came overwhelmingly from the business itself, with little additional contribution from net finance income.
The uneven sales performance puts management’s investment decisions in focus. Unilever needs to sustain Foods’ momentum while addressing the decline in Personal Care.
It has considerable financial room to do so. September’s cash balance of N91.34 billion far exceeded N2.38 billion in combined borrowings and lease obligations, giving management scope to invest without relying heavily on additional debt.
Spending on factories and equipment increased to N8.95 billion from N1.09 billion a year earlier.
The spending also needs to produce cash. Despite higher profits, operating cash after tax fell from N32.83 billion to N10.26 billion as tax payments increased, and more money became tied up in inventory and customer balances. Better cash generation would help fund further investment from current trading.
At the October 23 closing price of N109, Unilever’s shares had gained 51.4% since the start of the year.
For investors, the next test is whether Foods can maintain its momentum while investment helps the weaker categories recover.
Unilever has the resources; deploying them effectively to lift earnings per share and generate more cash will determine how well the business supports its valuation.
