Unilever reports higher profit despite lower revenue

Unilever Consumer Care Limited (UCCL), the manufacturer of Horlicks in Bangladesh, said it generated a 25 percent year-on-year higher profit in the three quarters to September even though revenue dropped.

According to the financial statements published yesterday, the multinational company's overall sales declined 6 percent to Tk 300 crore in January-September. On the other hand, the cost of raw materials increased, which resulted in a decline in gross profits.

Yet, the manufacturer, a part of the Unilever Group of Companies, managed to increase its net profit by significantly reducing operating expenses and improving net finance income.

The operating cost slumped 37 percent to Tk 51 crore during the first nine months of 2023 from Tk 81.5 crore during the same period a year ago. The net finance income surged 627 percent to Tk 12.22 crore.

As such, UCCL recorded a 25 percent increase in net profit to Tk 67.8 crore. It registered Tk 54 crore in net profit in the same period a year ago.

The earnings per share (EPS) rose to Tk 35.19 in January-September of 2023 from Tk 28.04 in the same period the previous year.

The company, formerly known as GlaxoSmithKline Bangladesh Ltd, said despite a significant increase in raw and packing material costs and a marginal drop in revenue, the EPS improved due to efficiency in operating expenses and a one-off benefit coming out of reassessment of past liabilities and obligations.

It also received a one-off waiver of technical assistance fee and royalty granted from the parent company for 2023 considering the current economic condition of the country.

Shares of the company closed 0.70 percent higher at Tk 2,050 on the Dhaka Stock Exchange yesterday.

Unilever Overseas Holdings BV acquired 81.98 percent of the shares of GlaxoSmithKline Bangladesh in June 2020 and subsequently, the name was changed to Unilever Consumer Care Ltd.