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Unilever Consumer Care secured a 25.49 per cent year-on-year profit growth in January-September this year, quite a feat when its revenue earnings declined, raw materials became costlier, and the local currency weakened against the dollar.
In an earnings disclosure, the company said it had curbed operating expenses by a remarkable 37.8 per cent in the nine months to September, compared to the same period a year ago, and that helped boost income.
During the time, the sales revenue of Unilever Consumer Care fell 6.23 per cent year-on-year as sales volume dropped.
Apart from cost-cutting measures, the company got advantage of its cash funds that increased finance income, supporting the profit growth.
Finance income jumped 624 per cent to Tk 122.29 million in January-September 2023 from the same period of the previous year.
Chairman of Unilever Consumer Care Masud Khan said they had adopted some "innovative measures" to reduce operating costs, keeping in mind macroeconomic worries stemming from the Ukraine-Russia war.
"Our company was able to reap the outcome of the innovative measures," he added.
The company also enjoyed a waiver of the royalty payment charged by the Unilever.
Usually, all multinational companies charge such royalty for using their brands and other services.
Unilever Consumer Care has been exempted from payment of royalty and technical assistance fee (TAF) worth around Tk 160 million by the parent company for 2023.
The company's total revenue comes from sales of health food drink and glucose powder.
The sales volume of the products declined 25 per cent and 1.3 per cent for January-September this year, from the corresponding period last year.
The company's chairman said sales had dropped since people's purchase capacity had shrunk amid high inflation.
"The life-saving products and drugs got priority amid the high inflation. That's why the sales of our company declined for January-September compared to the same period of the previous year."
A one-off benefit from reassessment of past liabilities and obligations was another reason behind the company's year-on-year profit growth in the first nine months of 2023.
The company gained a robust year-on-year growth in operating cash flow for January-September this year, compared to a year earlier, because of what company officials said was deferred settlement of Usance Payable at Sight (UPAS) LCs.
The net operating cash flow per share (NOCFPS) rose 94 per cent to Tk 20.65 in January-September from the same period last year.
In case of UPAS LCs, companies get credit from banks at the time of opening LCs, which get settled six months later.
Meanwhile, having remained stuck at the floor price of Tk 2000.1, the stock began moving up on the Dhaka Stock Exchange on April 30 and finally closed at Tk 2,044.10 per share on Thursday.