Wednesday, May 08, 2024
Unilever Consumer Care, a subsidiary of Unilever Bangladesh that manufactures Horlicks and GlucoMax D, saw its profit jump by 32 per cent in 2023, thanks to efficiency in operating expenses and a significant increase in net finance income.
As per Saturday’s board meeting decision, which was disclosed on Sunday through the Dhaka Stock Exchange (DSE) website, the company announced it would give 300 per cent cash dividends for the year to its shareholders.
The listed multinational company’s net profit was approximately Tk 96.15 crore in 2023, up from Tk 73 crore in 2022.
Unilever Consumer Care said its earnings have improved due to efficiency in operating expenses, a significant increase in net finance income, a one-off benefit coming from the reassessment of past liabilities and obligations, and a one-off waiver of technology and trade mark royalties granted by the parent company for 2023.
In the last year, its earnings per share (EPS) rose by 31.6 per cent to Tk 49.89, compared to Tk 37.90 a year earlier (2022).
The company will hold its Annual General Meeting on May 14, and the record date for entitlement of the dividend is April 2.
The company's net operating cash flow per share (NOCFPS) grew by 35 per cent year-on-year to Tk 25.43 per share in 2023.
The net asset value per share (NAVPS), which refers to the excess of total assets over total liabilities, reached Tk 122.21 per share for 2023, up from Tk 87.25 in 2022.
Unilever Consumer Care said the increase in NOCFPS resulted from the deferred settlement of Usance Payable at Sight (UPAS) LCs. NAVPS increased due to an increased balance of cash and cash equivalents, along with a one-off benefit from the reassessment of past liabilities.
The company paid a total of 240 per cent cash and 60 per cent stock dividends for the year 2022, which was the lowest since 2015.
The share price of Unilever Consumer Care stood at Tk 2,052.20 per share on the Dhaka bourse on Sunday.
Unilever purchased an approximate 82 per cent stake in GlaxoSmithKline (GSK) Bangladesh, which has been listed on the bourses since 1976, from Setfirst in June 2020 for Tk 2,020.8 crore, making it the largest transaction by a single company on the Dhaka bourse.
Under the acquisition, Unilever got ownership of GSK’s iconic health food and drinks (HFD) portfolio brands, including Horlicks, Boost and Glaxose-D.
The acquisition, though, came under the scanner of the Bangladesh Securities and Exchange Commission five months later, which raised issues about GSK Bangladesh’s name change to Unilever Consumer Care, along with other matters.
This name change, which took place on November 29, 2021, confused uninformed retail investors, who jumped to snap up shares of Unilever Consumer Care, sending its price soaring.
Horlicks, the company’s top-selling product, accounts for as much as 90 per cent of its total revenue income.
