Unilever earns $70m in first quarter of 2023

Unilever Caribbean Ltd has reported earnings of $70 million, representing 12.7 per cent in growth, for the first quarter of 2023 over the previous comparative period.

In the company's unaudited financial statements on Tuesday, chairman Ignacio Segares said the revenue growth was primarily from export sales, since it grew significantly in areas such as home care, personal care and foods. Personal care and home-care segments grew by 68 per cent and 7.5 per cent respectively.

"Local sales declined marginally over the prior period, but this decrease was mainly due to a higher comparator as in the prior period sales were brought forward from quarter one to quarter two to mitigate delays in shipping and logistics challenges."

Segares added that supply-chain constraints, inflationary pressures, high material and freight costs continue to affect the company.

This resulted, he said, in "a reduction in the gross margins for the first quarter. In addition, the revenue growth in the export markets came primarily from traditionally lower margin categories."

He said the company has also incurred a one-off restructuring cost.

Segares said, "There was a more focused investment in the home care segment, but with overall savings in marketing, together with savings in administrative expenses, the profit before tax was $4 million."

He said the company still has a strong balance sheet with a "healthy cash generation" and will remain focused on accelerating profitable growth.