Unilever Consumer Care’s profit drops despite higher sales

Unilever Consumer Care's sales rose 14 per cent year-on-year to Tk 114 crore in the first quarter of the current year but it could not prevent a 31.8 per cent drop in profits due to an increase in prices of raw materials and duty.

The cost of the goods it sold surged 28 per cent to Tk 63 crore.

Earnings per share of the multinational company, formerly known as GlaxoSmithKline, stood at Tk 10.20 in the January-March quarter of 2021 which was Tk 14.97 in the same period of the previous year.

Its net asset value per share also reduced to Tk 133.24 in the quarter from Tk 147.12, according to the company's quarterly report.

"This reduction in EPS was mainly due to lower gross margin (caused by material inflation and duty increase) and lower finance income," said the company.

It partly recovered from the profit drop through cost saving initiatives and lower operating expenses, it said.

The company's financial report was adopted in a board meeting held yesterday.

Net operating cash flow per share rose to Tk 22.64, which was Tk 0.71 before. This was due to a newly introduced distribution model where a majority of sales are done on cash basis, said the company.

In the same meeting the company has further resolved to initiate necessary acts, steps and processes to resume manufacturing activities of food products and other commercial activities at the company's Chattogram site located at North Kattali, Fouzderhat Industrial Area, Chattogram within Q4 2022.

Yesterday stocks of Unilever traded at Tk 2,772 at Dhaka Stock Exchange.