Unilever Nigeria has decided to reward its shareholders big time in the first half of 2026. This comes even though the company's net profit only saw a slight increase. Instead of reinvesting most of its cash back into the business, Unilever is giving out more money to its shareholders.
The company announced on Tuesday that it will pay N2 to shareholders for every share they own. This is four times the amount paid out during the same time last year.
This payout means Unilever will distribute about N11.5 billion to its equity investors. This is 73.7 percent of its profit after tax for the period, which only grew by a small percentage.
Unilever Nigeria reported a profit after tax of N15.6 billion, which is 8.3 percent higher than last year. This is a record profit for the company in the first half of the year.
Revenue increased by 22.2 percent to N15.6 billion. But earnings did not grow at the same pace. This slow profit growth happened alongside rising costs in many areas.
Food Sector Dominates
Unilever Nigeria's food business, with popular brands like Blue Band Margarine, Lipton Yellow Label, and Knorr Cubes, led in sales. It accounted for 64.3 percent of total sales, up from 59.8 percent last year.
The company, which also makes personal care and beauty products, is focusing more on local sourcing. This is to find alternatives for key imports and to protect itself from the challenges of fluctuating exchange rates.
Last year, Unilever increased its local sourcing to 60 percent, as stated in its 2025 Sustainability Report. The company has also engaged over 10,000 farmers to strengthen its supply chain.
“By increasing local sourcing, manufacturing, and partnerships, we are strengthening supply security, reducing exposure to foreign exchange volatility, and creating shared value within Nigeria’s economy,” the report explained.
During the review period, total assets dropped to N177.2 billion from N180.2 billion. This was due to a 12.3 percent fall in cash and cash equivalents, mainly caused by lower fixed deposit income.
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