Unilever Consumer Care profit drops in H1 despite revenue growth

Unilever Consumer Care, a multinational company listed on the capital market, posted a 7.74% decline in year-on-year net profit for the January-June period of 2025, despite a 2.31% rise in revenue.

In the January to June period, its revenue increased to Tk175.06 crore compared to Tk171.11 crore in the same period of the previous year. However, its net profit declined to Tk38.13 crore with earnings per share (EPS) of Tk19.78, down from Tk41.33 crore and Tk21.44 respectively in January-June 2024, according to its unaudited financial statement.

On Thursday, the company's share price closed at Tk24.88 on the Dhaka Stock Exchange.

In the April to June quarter, its revenue stood at Tk79.65 crore, up from Tk77.13 crore in the same period of the previous year. During the second quarter, the company posted a profit of Tk 24.33 crore, higher than Tk18.95 crore a year earlier. 

Its earnings per share rose to Tk12.62 from Tk9.83 in the same quarter of the previous year. However, the company's net asset value (NAV) after tax decreased by 25.40% to Tk94.61 crore at the end of June 2025.

In an explanation, the company said the decline was due to the parent company reintroducing technology and trademark royalties. Additionally, the company did not receive any one-time benefit from reassessing past obligations this year, unlike last year when it did. 

However, this negative impact was partly offset by improved operational efficiency, a one-time benefit from reassessing prior technology and trademark obligations, and smart cash investments that resulted in significantly higher net finance income.

NOCFPS dropped significantly because the company settled all outstanding Usance Payable At Sight (UPAS) Letters of Credit during the period and did not avail any new UPAS facilities. This caused a much higher cash outflow compared to the operating profit earned.

NAV per share decreased due to the payment of the FY2024 dividend, which was declared and paid in the first half of 2025.

In 2024, despite a 31% drop in profits, Unilever Consumer Care Bangladesh recommended a 520% cash dividend for its shareholders, a notable increase from the 300% cash dividend paid in 2023. In 2024, its profit declined to Tk66.70 crore compared to the previous year.

Unilever Consumer Care markets health-focused products in Bangladesh, including popular brands like Horlicks and glucose-based drinks.

Originally listed on the stock exchange as GlaxoSmithKline (GSK) Bangladesh in 1976, the company underwent a significant ownership change in 2020. Unilever Overseas Holdings BV acquired an 82% stake in the company by purchasing 9.875 million shares from Setfirst, a sister concern of GSK. Following the acquisition, the new owner rebranded the company as Unilever Consumer Care.

As of 30 June 2025, sponsors and directors hold 92.80% of the company's shares, institutions hold 3.50%, foreign investors 0.11%, and the general public 3.59%.