Unilever reports 141% or $5.2m increase in profit after tax

Unilever Caribbean Ltd (UCL) has reported $5.2 million in profit after tax which is a 141 per cent jump compared to the same period last year.

Revenue, however, was $119.3 million or 7.2 per cent – a decrease for the comparative period last year.

This was reported in the company's half-year unaudited financial statement on Friday.

UCL said this is because of lower sales in the local market and a marginal decline in the region, as there were changes within the market forces arising from the prolonged impact of a high inflationary environment.

Despite this reduction, the company saw an improvement in the gross margins over the last two quarters and has begun to recognise the anticipated improvement in material and freight costs.

Operating profit before restructuring costs decreased by $6.5 million compared to the prior comparative period.

This was because of shortfalls in revenue which were offset by 16 per cent savings in operating expenses.

In the second quarter, the company was able to achieve a 24 per cent reduction of reduced operating expenses compared to quarter one.

Home and care, in Q2, represented 37 per cent of total revenue compared to 55 per cent in the prior comparative period and 43 per cent in quarter one.

This is in keeping with the company's focus of accelerating profitable growth for sustainable returns.

Given the continued portfolio shift, the beauty and personal care pillar now represents 52.8 per cent of total revenue and has delivered a strong year-over-year growth throughout the period.

The company's home and care category was impacted because of inflationary challenges, but the beauty and personal care category – in the local market – reported a healthy growth in Q2.

Chairman Daniela Bucaro said, "Despite the current fluid environment, UCL maintains a solid financial position, with healthy working capital and retained earnings, with an earnings per share of $0.30 for the period ending June 30."

An interim dividend of $0.08 has been approved by the board of directors for the half year which will be paid on September 15.

Bucaro said, "Recent movements within the Unilever group’s global and regional structures, including the resignation of my predecessor has provided for my appointment as chairman effective July 14, as well as the welcoming of two new directors to fill vacancies. I look forward to leading the board at this critical juncture of the journey of the company creating shareholder value and being purpose led and future fit."