Unilever Consumer Care's profit rises 17% in Jan-Mar

Unilever Consumer Care Ltd (UCL), the maker of four brands, including Horlicks, said its profit soared 17 per cent in the first three months of this year despite the consumer goods company recorded a fall in sales.

The UCL logged Tk 20.13 crore in profits in January-March this year up from Tk 17.26 crore a year ago.

However, the company's revenue dropped 11 per cent year-on-year to Tk 108.5 crore in the January-March quarter of this year.

The earnings per share (EPS) of the company, a part of Unilever's group of companies, rose to Tk 16.72 in the first quarter of this year from Tk 14.33 the same period a year ago.

"Despite significant increase in raw and packing material costs, EPS shows an improvement mainly due to efficiency in operating expenses, increased finance income as well as one-off benefit coming out of assessment of past liabilities and obligation in the light of current business development," the UCL said.

The UCL posted spike in its net asset value during the quarter resulted from the improved profitability.

The company cut its operating expenses by 23 per cent year-on-year in January-March quarter of 2023.

It, however, said its net operating cash flow per share (NOCFPS) plummeted 80 per cent year-on-year to Tk 6.21 in the first quarter of this financial year.

"The decrease in NOCFPS is mainly due to significant increase in raw and packing material prices along with significant increase in foreign exchange rate partly offset by efficiency in operating expense," said Unilever.

UCL reported a profit of Tk 73.05 crore in the financial year that ended on December 31, up 38.45 per cent year-on-year, the company said.