The consistent improvement in consumer confidence in the second half of 2020 helped to boost Unilever’s revenue by 36.9 percent year on year to GHc456.28 million in Financial Year (FY) 2020 from GHc333.29 million in FY2019. This was a remarkable performance especially given that the company’s revenue was down in the third quarter of 2020. The recovery in revenue enabled Unilever to post a gross profit of GHc78.67 million in FY 2020 from a gross loss of GHc15.39 million a year ago.
The tough operating environment in 2020 may have helped to reduce some components of operating expenses (administrative and distribution expenses), which could have been occasioned by strict covid-19 containment measures that restricted movement and forced several companies to adopt a hybrid working model (virtual and physical). However, although operating expenses dropped by 16.4 percent year on year to GHc125.07 million, it was still significant enough to completely erode the gross margin.
Consequently, the company’s earnings remained in red for the second consecutive year with a net loss of GHc26.00 million in FY 2020 from a higher net loss of GHc160.32 million in FY2019.