This notable profit stands in stark contrast to the loss of N458.29 million incurred during the first quarter of 2023 in foreign exchange revaluation. The substantial difference in foreign exchange revaluation is attributed to the volatile nature of Nigeria’s foreign exchange market.
During the first quarter of 2023, the naira closed at N460.35/$ on the official market. However, by March 31, 2024, the naira had depreciated significantly, closing at N1309/$1, marking a staggering 184.34% depreciation over the one-year period.
The unification of the foreign exchange market by the Central Bank of Nigeria (CBN) in June, coupled with the further devaluation of the naira, exacerbated the situation. Many companies with exposure to foreign currency-denominated loans on their balance sheets experienced significant foreign exchange losses as a result.
In addition to the substantial profit from foreign exchange revaluation, Unilever Nigeria reported a revenue of N32.31 billion and a profit-before-tax of N4.35 billion for the first quarter of 2024. Although slightly lower than the N4.49 billion recorded in the same period of 2023, the company’s profit-before-tax remains robust.
Unilever Nigeria also paid a tax of N1.002 billion for the period, resulting in a profit of N3.35 billion in Q1 2024. This represents a notable increase of approximately N680 million from the N2.67 billion recorded in the corresponding period of 2023.
