1H2026 Earnings Update: Unilever Ghana (“UNIL”) released its unaudited 1H2026 financial results, reporting a 392.2% y/y surge in net profit to GHS125.6mn. The strong earnings performance was driven by a 13.6% y/y increase in revenue to GHS606.2mn, a 16.6% y/y decline in cost of sales to GHS 285.1mn, a 352.5% y/y surge in finance income to GHS 3.7mn, a 32.9% y/y decline in finance costs to GHS 1.8mn and a 58.5% y/y increase in other income to GHS5.8mn. We also note that the 1H2026 net profit came off a low base of GHS 25.5mn in 1H2025, amplifying the percentage increase. Operating expenses rose by 10.3% y/y to GHS 161.4mn, outpacing the average inflation rate of 3.8% during the period, primarily due to a 20.4% y/y increase in brand and marketing investment to GHS 67.9mn and a 4.6% y/y rise in administrative expenses to GHS 82.6mn. Revenue growth reflected sustained investment in power brands alongside a relatively stable macroeconomic environment, which supported consumer purchasing power and demand. Consequently, gross margin expanded by 17.0pp y/y to 53.0%, operating margin improved by 18.1pp y/y to 27.3% and net profit margin increased by 15.9pp y/y to 20.7%. We believe higher other income primarily reflected management fees from Twifo Oil Palm Plantations (TOPP), tank farm rental income and scrap sales, while the increase in finance income likely resulted from higher returns on deposits and improved treasury management. Overall, we believe management is repositioning the business around premium brands, deeper market penetration, disciplined governance and operational excellence, in line with the Unilever Group’s global transformation strategy. This should enhance revenue quality, strengthen profitability, improve cash generation and support resilient long-term earnings growth. The stronger-than-expected 1H2026 performance also indicates tighter cost control than previously incorporated in our model, strengthening our investment conviction. Consequently, we upgrade our recommendation from “SELL” to “ACCUMULATE” and raise our target price to GHS34.51 from GHS20.05, implying a 72.1% increase from our previous valuation and a 17.0% upside from the current market price of GHS29.50 per share.
Unilever Ghana Plc. 1H2026 Results: Profit Soars on Revenue Growth, Non-Core Income and Cost Discipline
