Unilever Consumer Care announces higher dividend despite profit decline
Following the dividend declaration, its share fell by 0.56% to Tk2,500.60 today
Despite a 31% drop in profits, Unilever Consumer Care Bangladesh has declared a substantial dividend for 2024.
In an announcement on the Dhaka Stock Exchange (DSE) today (5 March), the company's board revealed plans to distribute a 520% cash dividend, a notable increase from the 300% cash dividend paid in 2023.
However, Unilever Consumer's financial performance for the year showed a decline, with net profit falling by 31% to Tk 66.70 crore compared to the previous year.
Despite this, the company has committed to paying approximately Tk100 crore in dividends, which is 150% higher than its annual profit. The additional amount will be sourced from its retained earnings, according to company insiders.
Keep updated, follow The Business Standard's Google news channel
Following the dividend announcement, Unilever Consumer's share price experienced a slight dip, closing 0.51% lower at Tk 2,501.90 on the DSE.
Unilever Consumer Care markets health-focused products in Bangladesh, including popular brands like Horlicks and glucose-based drinks.
According to the price-sensitive disclosure, the company will hold its annual general meeting on 15 May to approve the dividend payout and audited financial statements. The record date for determining shareholder eligibility for the dividend has been set for 6 April.
During the foreign currency reserve issues in Bangladesh, the cash-surplus company had cut its dividends in recent years. However, with the improved national reserve, the company increased dividends to its shareholders, Masud Khan, chairman of Unilever Consumer Care Bangladesh, told The Business Standard.
Horlicks fell to the bottom of consumers' priority lists during high inflation. Demand started to improve slightly in 2025, but 2024 was a difficult year for the business amid consumers' struggles, he added.
Horlicks sales were roughly 14% down in 2024 by volume, he said. The gross profit margin was slightly down last year.
Masud Khan further stated that to support the company, its foreign headquarters waived the regular technical assistance fee in 2023 and the first half of 2024. With an eased macroeconomic climate in Bangladesh, they started to charge the fee again in the second half of 2024.
The company increased efforts in branding in 2024 to boost sales. Its school campaign programme, Brain Games Olympiad, helped increase awareness about the product's positive impact on cognitive skills, according to the company chairman.
Unilever Consumer Care, originally listed on the stock exchange as GlaxoSmithKline (GSK) Bangladesh Ltd in 1976, underwent a significant ownership change in 2020. Unilever Overseas Holdings BV acquired an 82% stake in the company by purchasing 98.75 lakh shares from Setfirst Ltd, a sister concern of GSK. Following the acquisition, the new owner rebranded the company as Unilever Consumer Care.
The transaction was valued at Tk 2,020.75 crore, with Unilever paying Tk 2,046.3 per share. This marked a pivotal shift in the company's ownership and identity, aligning it with Unilever's global portfolio.
