Unilever Caribbean reports $13.9m mid-year profits

UNILEVER Caribbean has recorded revenue of $120.5 million for the half-year ended June 30, representing a 28.8 per cent increase compared to the same period last year.

The unaudited financials, released on August 14, showed Unilever posted an after-tax profit of $13.9 million – an increase of 165.8 per cent compared to the previous year.

Unilever chair Daniela Bucare said, “Revenue growth, favourable product mix, consistently increasing demand for our market-leading beauty and personal care brands and the decline in freight costs compared to the prior year, have resulted in an increase in gross profit by 19.5 per cent compared to the year prior.”

Operating profits increased to $21.5 million or 113.7 per cent.

“This turnaround in revenue was primarily from the beauty and personal care category, which continued to perform with consistent growth.

“This category is of increasing importance to our ability to deliver profitable growth and represented 55 per cent of total revenue at the end of the second quarter of 2024, a substantial increase from the 48 per cent contribution at the end of the second quarter in the prior year.”

She said revenue growth from this category can be credited to brands, including Dove, Degree, Vaseline and Axe body spray.

“Despite prior year challenges with the Home Care sector and especially laundry detergents, aggressive marketing strategies and competitive ‘everyday low prices’ applied in the second quarter of 2024 have successfully stimulated volume growth.”

Bucare said the company has also implemented cost management strategies, resulting in an 8.1 per cent reduction in selling, distribution, and administrative expenses.

She said notable improvements with collections and cash flow optimisation ensured care reserves grew from $157.8 million to $170.8 million.

The company reported earnings per share of $0.53, an improvement from $0.20 per share in the first half year of 2023.

The board approved an interim dividend of $0.14 per share, totalling $3.37 million.