Unilever Consumer Care posts 11.15 pc profit growth in Q1

Unilever Consumer Care secured a 11.15 per cent year-on-year profit growth in the January-March period this year, despite a fall in revenue.

In an earnings disclosure, the company said it had cut operating expenses by 34.42 per cent in the three months to March, compared to the same period a year ago, and that helped boost income.

According to a filing on the Dhaka bourse, Unilever Consumer Care's net profit jumped to Tk 223.81 million in the first three months of 2024 from Tk 201.35 million a year earlier.

In the first quarter of 2024, its earnings per share stood at Tk 11.61, an increase from Tk 10.45 a year ago.

Apart from the cost-cutting measures, the company took advantage of its cash funds that increased finance income, supporting the profit growth, the filing suggests.

Finance income jumped 13.60 per cent to Tk 46.95 million in the January-March period this year from the same period of the previous year.

The company also enjoyed a waiver of the royalty payment charged by Unilever.

Usually, all multinational companies charge royalty for using their brands and other services.

Unilever Consumer Care has been exempted from payment of royalty and technical assistance fees (TAF) for the period.

The company's total revenue comes from sales of health food drinks and glucose powder.

The sales volume of the company declined 13.40 per cent to Tk 939.81 million in January-March this year, from the previous corresponding period.

Meanwhile, after the declaration the stock began moving down on the Dhaka Stock Exchange on May 2 and finally closed at Tk 1862.40 per share on Thursday.