Unilever makes profit braving global crisis

The Unilever Consumer Care Ltd posted a 38 per cent rise profit after tax in FY22, at a period when other listed multinational companies reported decline in profits due to the global economic slowdown.

Unilever posted a net profit of Tk 73.04 crore in FY22, compared to Tk 52.7 crore in the same period previous year, show data available on the Dhaka Stock Exchange (DSE).

On the DSE website, the company stated that in 2022, their business saw a significant increase in raw and packing material costs, which has impacted the overall business performance.

While increased costs could not be covered through price increase, EPS shows an improvement mainly due to a one-off benefit from the reassessment of past liabilities and obligations in light of the current business challenges.

In FY20 the company made a profit of Tk 57.9 crore, and in FY19 it made a profit of Tk 98.5 crore. As per the company, its principal operations include the manufacturing and marketing of consumer healthcare products, including healthy food, drinks and powder drinks.

Its net asset value (NAV) per share was Tk 139.60 for the year ended December 31, 2022, and Tk 122.88 as of December 2021.

And net operating cash flow per share (NOCFPS) of Tk 30.11 for the year ended on December 31, 2022, as against Tk 51.65, respectively, for the same period of the previous year.

When contacted, a spokesperson for Unilever Consumer Care Ltd, Shamima Akter, told The Business Post that the full financial report of the company is yet to be released. As a result, it is not possible to report the total income and product-wise income of the entire accounting year.

“Our revenue has been significantly affected by the impact of the global recession. Otherwise, the income would have been higher”, she added.

The company said the discloser on Sunday, NOCFPS, has been decreased mainly due to a significant price increase in raw and packing material, along with a significant increase in foreign exchange rates, partly offset by efficiency in trade spending and overhead expenses.

However, as seen in the first nine months of FY22, the company earned total revenue of Tk 319 crore and a net profit after tax of Tk 54.04 crore.

Among them, the Horlicks sales stood at Tk 286 crore in the first nine months of FY22, while the glucose sales totaled at Tk33 crore meanwhile.

A source at the company with knowledge of the matter said, after acquiring GlaxoSmithKline’s stake in 2020, Unilever management took steps to boost sales while lowering operating costs.

After reviewing the financial report, the company will give its shareholders a 240 per cent cash and 60 per cent stock dividend for the year ended December 31, 2022.

As the reason for giving stock dividends, the company told DSE that “stock dividends have been recommended with the objective of potential utilization of the retained amount as capital for future BMRE (balance, modernization, rehabilitation and expansion).

The multinational company has declared a 300 per cent dividend for 2022: 240 per cent cash dividend and 60 per cent stock dividend.

This is the lowest cash dividend in at least eight years, data from the Dhaka Stock Exchange showed. This was the first time Unilever Consumer Care has announced a stock dividend.

The share price of Unilever Consumer Care remained unchanged at Tk 3,423.70 per share on the DSE on Sunday.