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Unilever Consumer Care bounced back strongly in the third quarter through September this year, supported by higher sales of Horlicks amid easing inflationary pressure, compared to the same quarter last year.
Sales of Horlicks gradually climbed over the past three consecutive quarters to September after a sharp year-on-year decline in 2024 owing to double-digit inflation.
The multinational company registered 26 per cent year-on-year revenue growth to Tk 1 billion for July-September, as inflation fell below 9 per cent in June this year for the first time in more than two years.
Revenue from Horlicks, the most popular health food drink brand, surged more than 24 per cent to Tk 961 million, while glucose powder sales saw a 10 per cent de-growth to Tk 47 million in the quarter through September this year.
Horlicks accounted for more than 90 per cent of the company's revenue in the quarter, indicating that demand for the product is returning as people's purchasing power improves on the back of cooling inflation.
Masud Khan, chairman of Unilever Consumer Care, said Horlicks sales bounced back strongly, especially for smaller packs, amid easing inflationary pressure. The small packs are affordable for low-income consumers.
He said the products had turned into discretionary items in 2024 as people had to spend more on essential food items amid double-digit inflation.
Supported by increased revenue, the company posted a remarkable 55 per cent year-on-year growth in profit to Tk 247 million for July-September this year.
Earnings per share (EPS) surged to Tk 12.80 in the July-September quarter this year from Tk 8.26 in the same quarter the year before, according to a stock exchange filing on Wednesday.
"Improved operational efficiency and enhanced marketing, especially for Horlicks, to increase its relevance among students, also contributed to both top-line and bottom-line growth," said Mr Khan.
The company's nine-month profit also went up 10 per cent year-on-year to Tk 628 million in January-September this year.
Net finance income, which also contributed to profit growth, rose 39 per cent year-on-year to Tk 232 million in the nine months.
Moreover, the company gained Tk 17.8 million from an adjustment of technology and trademark royalty in the nine months to September against the earlier payment.
The brand owners of all multinational companies charge local business units technology and trademark royalty.
Annual performance
Unilever Consumer Care's annual profit dropped 30 per cent year-on-year to Tk 667 million in 2024, while revenue registered a 14 per cent de-growth to Tk 3.38 billion in the year due to lower sales amid raging inflation that squeezed people's purchasing capacity.
Despite reporting lower profit, the company paid a 520 per cent cash dividend for the year - the highest payout in five years - as the dollar crisis eased allowing it to repatriate profits more smoothly than before.
Listed as GlaxoSmithKline Bangladesh in 1976, Unilever Group acquired 82 per cent stakes in GlaxoSmithKline's health food drinks business worth more than Tk 20 billion in 2020 and renamed as Unilever Consumer Care focusing on consumer healthcare nutrition business.
Meanwhile, following the latest earnings disclosure, the stock of Unilever Consumer Care rose about 1 per cent to Tk 2,421.3 per share on Wednesday on the Dhaka Stock Exchange. It is the fourth most-valued stock on the Dhaka bourse.
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