In the trading week beginning November 18, 2024, Unilever Nigeria Plc’s shares had jumped 28% week-to-date, bringing the year-to-date performance to almost 95%.
The increase follows the release of the company’s Q3 financial results on October 21, 2024, which showed a 31% year-over-year growth in pre-tax profit of N13.96 billion for the nine months ending September 30.
Furthermore, Unilever Nigeria’s sales increased 49% from 2023 to 2024, from N71 billion to N103 billion.
The stock has increased by more than 50% since the financial reports were made public, and this week’s trade has maintained an upward trend.
The trend in the market:
At the start of the year, Unilever Nigeria’s share price was N14.80. The stock gained speed early on, completing January at N18.65, a considerable increase from its starting price, driven by a significant market volume of 65 million shares.
- The stock fell in February but recovered in March before falling to N14.75 in April.
- With 12.7 million shares traded, the stock rose again in June. The stock saw three straight months of advances from August to October, closing at N23.00 per share, despite a minor decline in July.
Following the release of its Q3 results in late October, Unilever Nigeria’s stock continued to rise into November, peaking at N29.60 on November 22, 2024, when the market opened. With further market activity, this increase has raised its year-to-date performance to almost 95%.
Potential causes of positive sentiment
Increased trading activity and significant improvements in Unilever Nigeria’s financial results have probably contributed to the company’s recent market success.
- The company’s June half-year pre-tax profits increased by a modest 7% year over year, from N5.9 billion in 2023 to N6.3 billion in 2024.
- Its unaudited interim financial statement for H1 2024 also showed a notable 41% increase in revenue, hitting N63.9 billion from N45.4 billion at the same time the year before.
- The stock recorded a market volume of 12.7 million shares in June, at N18.00, up from N15.05 in May due to increased trading activity. The stock recovered and closed in positive territory from August to October, notwithstanding a minor drop in July.
- With the firm reporting sales of N103.8 billion, a 46% year-over-year gain compared to N71.2 billion in Q3 2023, the announcement of Q3 results in late October seems to have accelerated the stock’s upward trend.
As of the market opening on November 22, the stock’s year-to-date performance had surpassed 95%, presumably due in part to these outcomes.
The Managing Director’s remarks:
Tim Kleinebenne, the managing director, commented on the findings: “The consistency in our quarter-on-quarter growth and sustained performance is a clear testament to our commitment under the Growth Action Plan (GAP). We remain dedicated to serving consumers with our top brands, ensuring they meet their daily needs for improved health and hygiene.”
He went on to say: “Unilever Nigeria is pleased with the progress we’ve achieved, driven by our focus on operational efficiency, cost optimization, purposeful brands, and expanding market share across key categories.”
