THE board of Unilever Nigeria Plc, has announceda profit after tax of N5.5 billion for the year ended December 31, 2011, compared with N4.2 billion recorded in 2010.Presenting its financial statement for2011 to the Nigeria Stock Exchange (NSE), the firm explained that its turnover also increased from N46.8 billion in 2010 to N54.7 billion.Based on the increased performance, the board explained that it had proposedto reward shareholders with a dividend of N1.40kobo for the period under review.According to the company, cost of sales in 2011 stood at N34.7 billion againstN29.4 billion posted the preed, while distribution and administration expenses were N11.8 billion.Other expenses according Unilever Plc were N38.980 million while finance costs was put at N212.905 million.Making reference to its fixed assets as at December 31, 2011, the company announced N14.8billion compared withN11.739 billion in 2010 while other bank balances stood at N2.942 billion compared withN2.677 billion in 2010.Other debit balance were N5.930 billion as against N3.5 billion in 2010 leaving trade creditors at N4.823 billion compared with N3.7 billion.According to the company, short term borrowings was nil from N730.8 million in 2010 while working capital was N2.624 billion as against N199.410 million in 2010.Meanwhile, Fitch Ratings had on Monday, affirmed Unilever NV's and Unilever Plc's (together Unilever) Long-term Issuer Default Ratings (IDR) and senior unsecured ratings at 'A+' and affirmed both entities' Short-term IDRs at 'F1'.The outlooks on the long-term IDRs were stable. Fitch also affirmed Unilever Capital Corporation's (UCC) senior unsecured rating at 'A+' and its commercial paper programme at 'F1', as well as Alberto Culver's senior unsecured rating at 'A+' as both UCC and Alberto Culver benefit from cross-guarantees between Unilever NV and Unilever Plc.The affirmation, according to Reuters, reflects Unilever's position as one of the world's largest food and consumer products group, its balanced scale in terms of geography and business portfolios, and its moderate financial leverage, against the mature nature of some of its product categories, threat from retailers' private labels and M&A appetite.'Fitch expects pricing power to be tested for Unilever in 2012 given the pressure on disposable incomes in the developed markets and no pricing tailwinds relative to 2011,' says Pablo Mazzini, senior director in Fitch's European Corporates team.Fitch notes the soothing effects from its large exposure to emerging markets (now representing 54 per cent of group sales) as a key driver of net sales growth.'However, the agency highlights the highly competitive environment and the need to continue investing in such markets to ensure access to consumers.'Given such exposure, Unilever is actually more prone to be negatively affected by a meaningful economic slowdown in emerging economies, such as China or Brazil than in developed markets. Fitch continues to believe, nonetheless, in the long-term structural growth trend in consumption from emerging markets.
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