Unaudited financial results of Unilever Ghana Limited for the first-half of 2010 show the consumer goods manufacturer recorded impressive growth in revenue and profit-after-tax over the period.
The company raked in revenues of GH¢88.5million, representing growth of 6.4% over the first half of 2009. Operating profit also shot up to GH¢15.9million, reflecting 18% of total revenue compared to an operating margin of negative 0.7% in the prior year.
Profit-after-tax was GH¢11.5million and a significant 1,600% greater than the GH¢0.67million achieved in the first six months of 2009.
The company revealed that this strong performance was driven by operational efficiencies and a more stable exchange rate regime. Improved cost management helped to lower operational costs by 13% from GH¢83.7million to GH¢72.6million.
A more stable exchange rate regime and low inflation have generally characterised the current trend of stability in the macro-economy, helping to control the cost of capital and other inputs sourced from both local and foreign markets.
The performance is against the backdrop of a challenging environment for industry, with businesses complaining about high power costs, import competition and expensive credit.
The Association of Ghana Industries (AGI), of which Unilever is a member, recently revealed that business confidence among its membership is at its lowest since the start of the year. Its Business Barometer Indicator (BBI) fell into negative terrain for the first time since the index’s inception.
Unilever’s impressive results, however, should assuage market observers and encourage investor interest in its stock, which saw a price decline in the past week.
Commenting on the outlook for the rest of the year, the company acknowledged that the business environment remains challenging, but could be surmounted.
“The operating environment continues to be challenging; nevertheless, we are confident that our strategies, brands and partners will deliver sustainable value to our shareholders,” it said in a statement.
By Leslie Dwight MENSAH
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