Unilever Consumer Care has reported 15 per cent growth in the earnings per share (EPS) for July-September (Q3), 2022 compared to the same period in the previous year, riding on price hikes and operational efficiencies.
The company's one-off benefit also played a vital role behind the growth in the EPS-to Tk 15.54 for the Q3, 2022 from Tk 13.52 a year ago.
It had a robust growth over the period of January-September, 2022 as well compared to the same period in the previous year. The EPS was Tk 44.86 for January-September 2022 following a 40 per cent growth from Tk 32.10 for the same period of the previous year.
Mohammad Naharul Islam Molla, company secretary of Unilever Consumer Care, said the one-off benefit and a decrease in operating expenses facilitated the growth in the EPS.
"It will not be wise to say that the EPS moved up only due to business growth," he said, adding that a decrease in overhead costs, rise in product costs and the one-off benefits combined were behind the rise in earnings.
Over the rationality of product price increases, Mr Molla said the rise in cost of production was much higher than the price hike of products marketed.
He, however, did not specify the amount of increase in cost productions.
According to the company's quarterly financial statement, an improvement in trade spends amounting to Tk 20 million supported the company's growth in earnings.
The efficiency in operating expenses amounting to Tk 100 million and large one-off benefit amounting to Tk 400 million have also facilitated the income growth, said the company explaining the deviation in the EPS.
The one-off benefit came out of reassessment of past liabilities and obligations in the light of recent business developments.
The company's operating cash flow decreased significantly for January-September, 2022 compared to the same period in the previous year.
The net operating cash flow per share (NOCFPS) was Tk 16.99 for January-September 2022 as against Tk. 41.54 for January-September 2021.
The cash flow had been squeezed mainly by the significant increase in the costs of raw and packing materials along with the significant increase in foreign exchange rates.
The Unilever Consumer Care, presently an 'A' category company, was listed with the stock exchange in 1976. The company's share price on Wednesday closed at Tk 2849.10 each on the Dhaka Stock Exchange with no movement.
The key products of the Unilever Consumer Care are Junior Horlicks, Standard Horlics, Mother's Horlicks, GlucoMax-D and Maltova.
Unilever, one of the largest fast-moving consumer goods company of the world, acquired 82 per cent stakes of the listed company GlaxoSmithKline Bangladesh (GSKBD) in June, 2020.
The deal worth Tk 22.25 billion was executed on the block board of the Dhaka Stock Exchange (DSE).
Following the acquisition by Unilever Overseas Holdings B.V., the GSK Bangladesh was named as 'Unilever Consumer Care'.