Unilever Consumer Care Limited (UCCL), the company behind Horlicks and one of the leading health food drink makers in Bangladesh, has published its un-audited financial statements for the nine months ended 30 September 2026 (9M 2026). The company earned a net profit of BDT 363.4 million, 42.1% lower than BDT 628.1 million in 9M 2025. Earnings per share fell to BDT 18.85 from BDT 32.59. This is its lowest nine-month profit in the last five years.
Unilever | Double-Digit Revenue Decline
Revenue fell 10.1% to BDT 2,481.2 million from BDT 2,758.7 million, a drop of BDT 277.5 million. This wipes out the 9.9% recovery of 9M 2025 and takes revenue to its lowest level in five years, slightly below the BDT 2,511.1 million of 9M 2024. Revenue has fallen in three of the last four years and has shrunk at a compound annual rate of 6.2% since 9M 2022.
Revenue by category | 9M 2026 | 9M 2025 | Growth |
|---|---|---|---|
Health food drink | 2,248.4 | 2,521.3 | -10.8% |
Glucose powder | 232.8 | 237.4 | -1.9% |
Total revenue | 2,481.2 | 2,758.7 | -10.1% |
Source: Company financials. Revenue in BDT million.
Sales quantity | 9M 2026 | 9M 2025 | Growth |
|---|---|---|---|
Health food drink (tonnes) | 3,130 | 3,542 | -11.6% |
Glucose powder (tonnes) | 819 | 772 | 6.1% |
Total (tonnes) | 3,949 | 4,314 | -8.5% |
Source: Company financials.
Health food drinks, which brought in 90.6% of revenue, drove almost the entire decline. Sales of the category fell 10.8% to BDT 2,248.4 million, a loss of BDT 273.0 million, or 98% of the total drop. The fall came from volume, not price: tonnes sold fell 11.6%. Volume is now 41.1% below the 5,316 tonnes sold in 9M 2022, a sign that demand for the core brand has been weakening.
Glucose powder held up better. Revenue slipped 1.9% to BDT 232.8 million even though volume rose 6.1%, because the average price fell 7.5%.
The third quarter was weaker. Q3 2026 revenue fell 13.0% to BDT 877.2 million from BDT 1,008.1 million.
Gross Margin Stuck Near Five-Year Low
Gross profit fell 10.5% to BDT 791.5 million from BDT 884.7 million, the fourth straight year of decline. Cost of sales fell 9.8% to BDT 1,689.7 million, a little slower than revenue, so gross profit dropped slightly faster than sales. Gross profit is now 49.1% below the BDT 1,554.0 million earned in 9M 2022.
The gross margin slipped 17 basis points to 31.9% from 32.1%, the lowest of the five years compared. The real damage was done last year, when cost of sales jumped 32.5% and the margin fell 1,161 basis points from 43.7%. With prices in the main category barely rising and volumes falling, the company has had little room to pass costs on to consumers. In Q3 2026, the gross margin fell to 32.2% from 34.1%.
Royalty Charge and Lower Finance Income Hit Profit
Operating profit fell 45.2% to BDT 311.0 million, and the operating margin narrowed to 12.5% from 20.6%. The main reason was the technology and trademark royalty. In 9M 2025, this line showed a gain of BDT 17.8 million after the company reassessed its royalty obligations, which it describes as a one-off. In 9M 2026, it was a regular charge of BDT 133.1 million. This swing of BDT 150.9 million explains 59% of the fall in operating profit. Operating expenses also rose 3.7% to BDT 347.4 million while revenue fell, lifting them to 14.0% of revenue from 12.1%. Excluding the royalty, operating profit would have fallen 19.2%.
Net finance income dropped 25.5% to BDT 173.1 million, another factor the company cites. UCCL started the year with BDT 2,744.8 million in cash and short-term investments, against BDT 3,963.3 million a year earlier, after paying a large dividend and settling its import financing in 2025. That left less money earning interest. Other income rose 41.6% to BDT 15.3 million. As a result, profit before WPPF fell 38.4% to BDT 499.5 million. After a WPPF contribution of BDT 25.0 million, profit before tax stood at BDT 474.5 million.
Tax expense fell 21.8% to BDT 111.2 million, less than the fall in pre-tax profit, so the effective tax rate rose to 23.4% from 18.5%. Non-deductible expenses added 3.4 percentage points to the rate this year, while last year they lowered it by 1.6 points.
Net profit came in at BDT 363.4 million, and the net margin fell to 14.6% from 22.8%. Profit is now 32.8% below 9M 2022 and well short of the BDT 678.2 million peak of 9M 2023. Q3 2026 net profit fell 33.4% to BDT 164.3 million. Net operating cash flow per share rose to BDT 38.17 from negative BDT 16.70, which the company links to lower outflows after most UPAS LCs were settled in the base year. Still, a lasting recovery depends on bringing health food drink volumes back.
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