Report
Victor Dima
EUR 14.84 For Business Accounts Only

Unilever Nigeria (SELL, TP NGN 21/share) - Q1 17A result: Sales growth of 32% y/y and operating cost reduction drives 30% EPS beat


  • Unilever Nigeria reported Q1 17A sales of NGN 22.2bn (ACe: NGN 20.2bn) with sales growth of 32.1% y/y (ACe: 20.2% y/y; FY 16A: 17.8% y/y) driving 10% beat vs. ACe.
  • EBIT grew by 44.4% y/y to NGN 2.7bn, helped by lower opex costs (16.0% of sales in Q1 17A vs. 24.6% of sales in Q1 16A) despite a 760bps y/y gross margin decline (28.4% in Q1 17A vs. 35.9% in Q1 16A).
  • EPS of NGN 0.42/share beat ACe (NGN 0.32/share) by 30.6% y/y, aided by a lower tax rate (26.5% vs. ACe: 30.0%).


Underlying
Unilever Nigeria PLC

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Victor Dima

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