Unilever Consumer Care Limited (formerly known as GlaxoSmithKline Bangladesh Limited) has recently published its half-yearly report for the period Jan’21-Jun’21. Revenue of the company grew by 11.2% YoY to Tk 2,040.2 million in H1’21 from Tk 1,834.5 million in H1’20. The growth in revenue is mainly driven by higher quantity sales of Health Food Drinks. However, profit from continued operations declined by 23.7% YoY from Tk 293.4 million in H1’21 to Tk 223.9 million in H1’20.
Revenue & Gross Profit Analysis
Revenue of the company increased by 11.25% YoY mainly higher consumer spending in Q1’21 and for a significant part of Q2’21. The 2nd phase lockdown during the Apr’21-Jun’21 had no real impact on the sales of Unilever. Gross profit only increased by 0.3% YoY. Gross Profit Margin has decreased by 4.9% from 49.5% in H1’20 to 44.7% in H1’21. This is mainly due to the rise in DMI duty increase from 15% to 25% & affordable pricing strategy to reach low-income groups.
The trading profit of Unilever has increased by 23.0% YoY from Tk 323.9 million in H1’20 to Tk 398.3 million in H1’21. This is mainly due to a 12.3% YoY decrease in operating expenses. Profit from continued operations decreased by 23.7% YoY from Tk 293.4 million in H1’20 to Tk 223.9 million in H1’21. Other expenses increased by Tk 97.4 million from the same period last year. Other expenses include Tk 112.0 million payable to Unilever Europe Business Center B.V and Unilever PLC, UK for technical assistance, technology, and trademark. Finance income declined by Tk 96.6 million compared to the same period last year due to lower interest rates earned on bank deposits.
The growth in revenue is a clear indication that Unilever is effectively using its distribution channel to drive higher sales of Health Food Drinks. Horlicks, Boost, Maltova & Glaxcose D are well-known brands in the country and the distribution strength of Unilever will only help the company to drive higher sales in the future. However, Bangladesh is facing its 3rd phase of lockdown. If the lockdown prolongs for a longer period, then it can have an adverse impact on consumer spending which might impact the revenue growth of Unilever.