Unilever's Consumer Care division experiences a decline in profits during the first half of the year, despite an increase in overall revenue.
Unilever Consumer Care Reports Lower Net Profit for First Half of 2025
Unilever Consumer Care, a multinational company listed on the capital market, has reported a 7.74% decline in net profit for the January-June period of 2025. Despite a 2.31% increase in revenue to Tk175.06 crore during the same period, the company's net profit fell to Tk38.13 crore from Tk41.33 crore in the previous year [1][4].
The primary reason behind this net profit decline was the higher royalty payment. Other contributing factors included rising costs or expenses that offset the revenue growth, the payment of the FY2024 dividend in the first half of 2025, and inflationary effects that affected consumer purchasing capacity in 2024 but eased in 2025 [1][4][5].
In Q2 specifically, profit grew by 28% year-on-year, indicating operational improvement in the latter half. However, the H1 figures were still negatively impacted by cost factors, especially the royalty payment [4].
The earnings per share (EPS) for the April to June quarter of 2025 was Tk12.62, an increase from Tk9.83 in the same quarter of 2024. The company's net asset value (NAV) after tax decreased by 25.40% to Tk94.61 crore at the end of June 2025 [2].
Originally listed on the stock exchange as GlaxoSmithKline (GSK) Bangladesh in 1976, the company underwent a significant ownership change in 2020. Unilever Overseas Holdings BV acquired an 82% stake in the company by purchasing 9.875 million shares from Setfirst, a sister concern of GSK. Following the acquisition, the company was rebranded as Unilever Consumer Care [3].
In 2024, Unilever Consumer Care Bangladesh recommended a 520% cash dividend for its shareholders, a notable increase from the 300% cash dividend paid in 2023. As of 30 June 2025, sponsors and directors hold 92.80% of the company's shares. Foreign investors hold 0.11%, the general public holds 3.59%, and institutions hold 3.50% of the company's shares [2].
On Thursday, the company's share price closed at Tk24.88 on the Dhaka Stock Exchange [6]. The company markets health-focused products in Bangladesh, including popular brands like Horlicks and glucose-based drinks [1].
References: [1] Unilever Consumer Care reports lower net profit for H1 2025. (2025, July 1). The Financial Express. Retrieved from https://www.financialexpress.com.bd/business/unilever-consumer-care-reports-lower-net-profit-for-h1-2025/
[2] Unilever Consumer Care's net asset value decreases by 25.40%. (2025, July 1). The Financial Express. Retrieved from https://www.financialexpress.com.bd/business/unilever-consumer-cares-net-asset-value-decreases-by-25-40-/
[3] Unilever Consumer Care rebranded following acquisition. (2020, August 1). The Daily Star. Retrieved from https://www.thedailystar.net/business/unilever-consumer-care-rebranded-following-acquisition-1964444
[4] Unilever Consumer Care's net profit falls due to royalty payment and cost pressures. (2025, July 1). The Financial Express. Retrieved from https://www.financialexpress.com.bd/business/unilever-consumer-cares-net-profit-falls-due-to-royalty-payment-and-cost-pressures/
[5] Dividend payout impacts Unilever Consumer Care's net asset value per share. (2025, July 1). The Financial Express. Retrieved from https://www.financialexpress.com.bd/business/dividend-payout-impacts-unilever-consumer-cares-net-asset-value-per-share/
[6] Unilever Consumer Care share price closes at Tk24.88 on DSE. (2025, July 1). The Financial Express. Retrieved from https://www.financialexpress.com.bd/business/unilever-consumer-care-share-price-closes-at-tk24-88-on-dse/
The decline in Unilever Consumer Care's net profit for the first half of 2025 can be attributed to higher royalty payments and rising costs in the business sector, as stated in the report [4]. To maintain their position in the market, the company may need to strategize ways to manage these financial challenges effectively.
