Unilever Consumer Care Limited (formerly known as GlaxoSmithKline Bangladesh Limited) has recently published its third-quarter financial report for the period Jul’21-Sep’21. Revenue of the company grew by 14.3% YoY to Tk 3,141.9 Mn in 9M’21 from Tk 2,776.3 Mn in 9M’20. The growth in revenue is mainly driven by higher quantity sales of Health Food Drinks. However, profit from continued operations declined by 2.4% YoY to Tk 386.7 Mn in 9M’21 from Tk 396.2 Mn in 9M’20.
Revenue & Gross Profit
Revenue of the company increased by 14.3% YoY even though the country was hit by 2nd and 3rd phase lockdown due to Covid-19. In Q3’21, the company’s revenue increased by 20.2% YoY even after having over a month of lockdown in this quarter. Gross profit increased by 10.2% YoY mainly due to higher sales. Gross Profit Margin has decreased by 1.7% from 47.3% in 9M’20 to 45.6% in 9M’21. This is mainly due to the rise in DMI duty increase from 15% to 25% & affordable pricing strategy to reach low-income groups.
Profit
The trading profit of Unilever has increased by 48.8% YoY from Tk 458.4 Mn in 9M’20 to Tk 682.1 Mn in 9M’21. This is mainly due to a 10.5% YoY decrease in operating expenses. Profit from continued operations decreased by 2.4% YoY from Tk 396.2 Mn in 9M’20 to Tk 386.7 Mn in 9M’21. Other expenses increased by Tk 156.3 Mn from the same period last year. Other expenses include Tk 174.5 Mn payable to Unilever Europe Business Center B.V and Unilever PLC, the UK for technical assistance, technology, and trademark. Finance income declined by Tk 132.3 Mn compared to the same period last year due to the lower interest rate earned on bank deposits.
Future Ahead
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. Since the Covid infection rate has decreased significantly due to the mass vaccination program we expect Unilever to continue its revenue growth in Q4’21.
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