Corporate tax cut boosts Unilever’s earnings

Unilever Consumer Care reported a 78.66 per cent rise in its earnings per share in the second quarter this year.

The company had logged an EPS of Tk 14.99 for April-June 2022 as against Tk 8.39 in the same quarter a year ago, the company said in a regulatory filing on Monday.

The company’s latest EPS was the highest in four years.

“The cut in corporation tax gave a boost to the company’s EPS in Q2,” Unilever Secretary Mohammad Naharul Islam Molla told The Business Post.

“We’re doing business well. If everything is fine in days to come, we can offer a healthy dividend at the end of the year. Our operational expenses were also lower compared to the previous year, which had a positive impact on the earnings too,” he said.

In the current fiscal year, corporate tax was reduced to 20 per cent from 22.5 per cent for listed companies.

On Monday, Unilever Consumer Care shares increased 1.29 per cent to Tk 2,860 on the Dhaka Stock Exchange. 

“EPS increased due to efficiency in operating expenses, reduction of corporate income tax rate as well as large one-off benefit coming out of reassessment of past liabilities and obligations in light of recent business development,” said Unilever Consumer Care, a part of Unilever’s group of companies and shall continue to operate in Bangladesh as a subsidiary of Unilever, focusing on consumer healthcare nutrition business.

Its NAV per share was Tk 108.20 as of June 30, 2022 and Tk 122.88 as of December 31, 2021.

“NAV per share decreased due to a fall in cash balance resulting from dividend payout,” said the company.

Net operating cash flow per share (NOCFPS) decreased due to lower advance received from customers compared to last year.

NOCFPS was Tk 13.22 for January-June 2022 as against Tk 13.68 for January-June 2021.

Unilever Consumer Care is selling different types of health food and consumer products under the brands Horlicks, Maltova and Boost, and Glaxose D.

Unilever is one of the world’s leading Consumer goods companies, making and selling around 400 brands in more than 190 countries. At Unilever we meet every day needs of nutrition, hygiene and personal care with brands that help people look good and feel good.