Unilever Consumer Care sees 38% profit drop in Q1
In the first quarter ended on March, its revenue increased to Tk95.41 crore compared to Tk93.98 crore in the same period of the previous year
Unilever Consumer Care, a multinational company listed on the capital market, posted a 38% decline in net profit in the January-March quarter of 2025, despite a 1.52% rise in revenue.
In the first quarter ended on March, its revenue increased to Tk95.41 crore compared to Tk93.98 crore in the same period of the previous year.
Its net profit declined to Tk13.79 crore with an earnings per share (EPS) of Tk7.16, a decline from Tk22.38 crore and Tk11.61 respectively in January-March of 2024, according to its un-audited financial statement.
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In an explanation, the company said that EPS decreased due to re-imposition of technology and trademark royalty by the parent company which increased operating expenses for the quarter and no one-off benefit coming out of reassessment of past liabilities and obligations.
The magnitude of the adverse impact was mitigated partially through operating efficiency and efficient investment of cash, resulting in significantly higher net finance income, it said.
Its financial statement showed that its operating expenses jumped by 28% to Tk19.61 crore.
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.
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.
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.
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.
