Unilever Nigeria’s Operating Costs Hit N125bn In 2025

Unilever Nigeria Plc recorded a sharp rise in operating costs in 2025, with expenses climbing to N125bn, underscoring the continued pressure of inflation on corporate earnings despite signs of easing price growth.

The N125bn cost outlay represents a 32.5 per cent increase from the N94.37bn spent in the corresponding period of 2024.

The higher cost base accounted for about 58.24 per cent of the company’s total revenue of N214.68bn recorded during the year under review.

The surge in costs came amid persistently high prices of goods and services across Nigeria in 2025, reflecting the lingering effects of inflation on production, logistics and distribution, even as official data pointed to a gradual moderation in inflationary pressures.

The figures were contained in the company’s interim unaudited full-year financial results for the year ended December 31, 2025, tracked by THE WHISTLER.

Despite the elevated cost environment, Unilever Nigeria posted strong top-line and bottom-line growth.

The consumer goods giant reported a turnover of about N215bn, representing a 44 per cent increase from the N150bn recorded in 2024.

Gross profit rose by 32 per cent to N90 billion, while net profit doubled to N31bn from N15bn in the previous year.

Commenting on the performance, the Managing Director, Mr Tobi Adeniyi, said the company’s results reflected the impact of strategic investments and improving market traction.

According to him, the fourth-quarter performance and full-year outcome were driven by continued momentum from Unilever Nigeria’s route-to-market expansion, a more agile and well-optimised operational structure, and strong demand across its portfolio of brands.

“Our fourth quarter performance and strong full year outcome reflect the continued momentum from our route-to-market expansion, increasingly agile, well-optimised operational structure, and the robust demand we are seeing across our iconic brands, including Knorr, Close Up, Pepsodent, Vaseline and Rexona,” Adeniyi said.

He added that the company delivered consistent quarter-on-quarter revenue growth that remained competitive, profitable and sustainable, despite the challenging macroeconomic environment.

Adeniyi also reaffirmed Unilever Nigeria’s long-term commitment to the country, noting that the company’s more than 100-year manufacturing heritage continued to shape its focus on innovation and quality.

“With a proud heritage of more than 100 years of manufacturing in Nigeria, every product and every experience reflects our legacy of innovation and our unwavering commitment to quality.

Through our trusted brands, we continue to brighten everyday life for all,” he said.

The latest results highlight both the resilience of Unilever Nigeria’s operations and the ongoing cost pressures facing manufacturers as they navigate Nigeria’s evolving economic landscape.