Unilever Nigeria Plc Q2 2025 – Efficiency and Pricing Strength Anchor 2025 Performance

Event

Unilever Nigeria Plc (“the Group”) delivered an impressive performance in Q2 2025, extending the growth momentum seen since the start of the year. Revenue rose sharply by 62% year-on-year to N51.13 billion (Q2 2024: N31.59 billion), driven by broad-based growth across all product segments. The Foods and Beauty & Wellbeing divisions led the advance, jumping by 65% and 159%, and contributing 61% and 11% to total revenue, respectively. The Personal Care segment also expanded by 37%, accounting for 28% of overall sales.

Outlook

Following our review of the H1 2025 performance, we expect Unilever Nigeria Plc to sustain its growth momentum through the remainder of the year, supported by improved pricing discipline, cost efficiency, and stronger contributions from the Foods and Beauty & Wellbeing segments. We project full-year revenue of N219.96 billion and profit after tax of N41.05 billion.

Incorporating the Q2 2025 results into our valuation model, we revised our fair value estimate upward to N81.58 (previously N50.01). With the stock price at N74.00, this implies a potential upside of 15%. Accordingly, we maintain our HOLD recommendation, reflecting our view that the current price already captures much of the Group’s earnings and margin improvement.

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