Cost control boosts Unilever Consumer Care’s profit
The multinational company also reported a 4% jump in its sales
Unilever Consumer Care Limited – previously operating as GlaxoSmithKline (Bangladesh) – has registered an impressive 58% year-on-year profit growth in the first half of 2022 despite a surge in its raw material and packaging costs.
The multinational company also reported a 4% jump in its sales.
In stock exchange filings on Monday, the company said its operational efficiency and the reduction in corporate income tax rate have helped it improve its profit.
After the disclosure of its half-yearly financials, the share price of Unilever Consumer Care increased by Tk36.5 or 1.29% to Tk2,860 each on the Dhaka Stock Exchange.
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After taking over the stake of GlaxoSmithKline in 2020, the Unilever management took some steps to boost sales and also minimise operating costs, say sources at the company.
Under the new management, its sales, and profit are gradually increasing as a result.
It also said a large one-off benefit coming out of reassessment of past liabilities and obligations in the light of recent business development helped it boost the earnings.
Health food drink Horlicks – the main product of the company – and glucose powder sales increased during the January-June period compared to the same period of the previous year.
According to its unaudited financials, its sales increased to Tk212.25 crore while operating expenses declined 7.37% to Tk56.27 crore.
In the first half ending in June, its net profit jumped to Tk35.32 crore from Tk22.39 crore in the corresponding period of 2021.
Despite a record rise in inflation, the sales of its health food drink increased to 3,572 tonnes, and glucose powder to 1,039 tonnes, compared to 3,492 tonnes and 939 tonnes respectively a year ago
In the second quarter, Unilever Consumer Care's profit jumped 79% year-on-year to Tk18.06 crore while the sales grew 1.33% to Tk90.78 crore.
Its cost of sales and operating expenses declined 16% and 7.58% respectively.
In 2020, Unilever Overseas Holdings BV acquired 82% shares of GlaxoSmithKline (GSK) Bangladesh Ltd.
Unilever bought 98.75 lakh shares from Setfirst Ltd, a sister concern of GSK.
Unilever bought each of the shares at Tk2,046.3 and the total value of the transaction stood at Tk2,020.75 crore.
GSK Bangladesh, which was a subsidiary of the British pharmaceutical giant GlaxoSmithKline plc, got listed on the Dhaka Stock Exchange in 1976.
In 2021, Unilever Consumer Care made a profit of Tk52.76 crore and paid a 440% cash dividend to its shareholders.
