Unilever Consumer Care profit grows in Q2 as revenue decline reverses

Unilever Consumer Care experienced a 28 per cent year-on-year growth in profit to Tk 243.31 million in April-June (Q2) of the calendar year 2025, supported by higher revenue and finance income.

The company had sustained a de-growth in revenue last year, but it reversed the decline in revenue in the first quarter through March this year, which continued through June.

Unilever reported a 3.27 per cent year-on-year growth in revenue to Tk 796 million in Q2 this year. It had witnessed a 14 per cent year-on-year fall in revenue to Tk 3.38 billion in 2024 because of double digit inflation that reduced people's purchase capacity.

The increased relevancy of products played a role in the revenue growth in the first and second quarters, compared to the same periods of the previous year, on the back of cooling inflation.

The company's Chairman, Masud Khan said it was a positive sign that revenue returned to the territory of positive growth.

He said their products had turned into discretionary items in 2024 as people had to spend more on unavoidable food items amid double digit inflation.

As inflation eased, it helped generate higher revenue.

Of the four products of Unilever Consumer Care, Horlicks has around 80 per cent share in revenue generation.

"We have enhanced our marketing, especially for Horlicks, to increase its relevance among students," said Mr. Khan.

The marketing strategy was the driver of profit growth amid a rise in the cost of sales in Q2 this year. The cost of sales was up 30 per cent year-on-year to Tk 551 million in Q2 this year.

The net finance income, which also contributed to the profit growth, advanced 44 per cent year-on-year to Tk 81 million in the April-June quarter.

However, in January-June profit plummeted by 7.7 per cent year-on-year to Tk 381.25 million, despite a 2.31 per cent year-on-year growth in revenue.

The payment for technology and trademark royalty coupled with higher cost of sales ate up a big chunk of profit in H1, said Mr Khan.

The brand owners of all multinational companies charge local business units technology and trademark royalty. Unilever Consumer Care was offered a waiver in 2024 but the global brand owner resumed imposing the fees this year.

The company paid technology & trademark royalty of Tk 123 million in Q2 this year. The net payment stood at Tk 72 million in H1 this year after the revision of a provision earlier made for such payments.

"The royalty payment was the main reason behind the decline in profit in H1," said Mr Khan.

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