Unilever Consumer profit plunges 48% in H1 as inflation squeezes sales

Unilever Consumer Care Limited, maker of health food drinks Horlicks and Boost, reported a sharp earnings decline in the first half of 2026 as slowing sales and persistently high food inflation squeezed consumer spending.

Infograph: TBS

According to its unaudited financial statements, net profit after tax fell 48% year-on-year to Tk19.9 crore in January-June, while revenue dropped 8% to Tk141 crore. Earnings per share (EPS) stood at Tk10.33.

The decline was driven by a 9.63% fall in its core health food drinks segment. Revenue from glucose powder, however, rose 2% to Tk19.37 crore, providing a minor cushion against the broader slowdown.

The second quarter was weaker still. Revenue fell 8% year-on-year to Tk72.96 crore, while net profit plunged 68% to Tk7.79 crore.

In a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (29 July), the company attributed the EPS decline to lower sales and a "high-base effect." In the corresponding period last year, it recognised a one-off gain after reassessing trademark and technology royalty obligations, making this year's comparison significantly weaker.

Market insiders said persistently high food inflation has forced many households to cut spending on nutritional supplements and premium beverages, weighing on demand.

Despite the profit decline, net operating cash flow per share improved to Tk30.13 due to lower operating cash outflows after most Usance Payable at Sight (UPAS) letters of credit were settled last year. Net asset value per share fell 27% to Tk84.62 following the FY2025 dividend payout.

Shares of the company closed 0.98% lower at Tk2,048 today, leaving its market capitalisation at Tk3,947 crore.

The company also announced several corporate decisions. Ruhul Quddus Khan, managing director of Unilever Bangladesh Limited, was appointed chairman of Unilever Consumer Care for a three-year term effective 28 July, replacing Masud Khan, who resigned after becoming chairman of the Bangladesh Securities and Exchange Commission. 

Samsuddoha Nayeem was appointed head of finance and Sharmin Akter company secretary.

The board also approved an unsecured intercompany loan facility of up to Tk150 crore for related party Unilever Bangladesh Limited to support working capital. The facility will remain available for 24 months, with each drawdown capped at six months, and will be extended on arm's-length terms, meaning the transaction will be conducted as if between unrelated parties.