Unilever Ghana PLC delivered a strong financial performance in the first half of 2026, supported by higher sales, improved profit margins and stronger operating efficiency.

The consumer goods manufacturer reported revenue of GH¢606.2 million for the six months ended June 30, 2026, representing a 13.6% increase from the GH¢533.9 million recorded during the same period in 2025.

Growth was supported by a 25% year-on-year increase across the company’s Power Brands within the Personal Care, Home Care, and Beauty and Wellbeing categories. Unilever Ghana said continued investment in its brands, improved product availability and stronger visibility at key points of purchase also supported the performance.

Profit rises sharply as cost of sales declines

Despite the increase in revenue, Unilever Ghana’s cost of sales declined from GH¢341.8 million in the first half of 2025 to GH¢285.1 million in 2026.

This helped gross profit rise by 67.2% to GH¢321.1 million, compared with GH¢192.0 million a year earlier.

The company’s gross profit margin consequently improved from 36% to 53%, meaning Unilever Ghana retained about GH¢0.53 in gross profit from every GH¢1 generated in sales during the period.

Operating profit more than tripled, rising from GH¢49.4 million to GH¢165.5 million. The operating profit margin also increased significantly from 9.3% to 27.3%.

According to the company, the margin improvement was supported by a more favourable product mix, disciplined cost management and continued improvements in operational efficiency.

Net profit increases by 392%

Profit before tax reached GH¢167.4 million, up 252.2% from GH¢47.5 million in the corresponding period of 2025.

After accounting for a tax charge of GH¢41.9 million, Unilever Ghana reported a profit after tax of GH¢125.6 million. This represents an increase of approximately 392% from the GH¢25.5 million recorded a year earlier.

Basic earnings per share rose from GH¢0.2040 to GH¢1.0044, reflecting the substantial increase in profit available to shareholders.

Finance income also increased from GH¢815,000 to GH¢3.7 million, while finance costs declined from GH¢2.7 million to GH¢1.8 million.

However, brand and marketing investment expenses rose from GH¢56.4 million to GH¢67.9 million as the company continued to invest in its brands and consumer engagement. Administrative expenses also increased from GH¢79.0 million to GH¢82.6 million.

Cash position strengthens

Unilever Ghana’s cash generation also improved during the period.

Cash generated from operations increased from GH¢71.6 million to GH¢135.1 million, while net cash generated from operating activities rose to GH¢95.1 million from GH¢38.1 million.

The company spent GH¢5.4 million on property, plant and equipment, down from GH¢10.4 million in the first half of 2025.

Unilever Ghana ended June 2026 with cash and bank balances of GH¢297.9 million, compared with GH¢66.7 million at the end of June 2025.

The company did not report a cash dividend payment during the first half of 2026, although its statement of changes in equity included a GH¢62.5 million dividend deduction. The same amount was recognised under dividend payables on the balance sheet, suggesting the dividend had been declared but remained unpaid as of June 30.

Assets and shareholders’ equity expand

Total assets increased by 53.1% to GH¢731.3 million from GH¢477.6 million.

Current assets almost doubled from GH¢321.0 million to GH¢584.2 million, supported mainly by the increase in cash balances. Inventories also rose from GH¢133.5 million to GH¢157.3 million, while trade and other receivables increased to GH¢113.5 million.

Total shareholders’ equity grew from GH¢216.9 million to GH¢340.8 million, largely due to higher retained earnings.

Total liabilities increased from GH¢260.7 million to GH¢390.5 million. This included GH¢162.2 million in trade and other payables, GH¢125.7 million owed to related parties and GH¢62.5 million in dividend payables.

What the results mean for investors

Unilever Ghana’s first-half results show that the company is not only growing sales but is also converting a significantly larger portion of its revenue into profit.

The reduction in cost of sales, expansion in gross and operating margins, stronger operating cash flow and improved cash position are all positive indicators.

However, investors may still need to monitor the rise in current liabilities, related-party payables and inventory levels. The sustainability of the improved margins will also depend on whether the company can maintain favourable input costs, pricing power and consumer demand during the second half of the year.

Overall, the results point to a considerably stronger financial position for Unilever Ghana compared with the same period in 2025.