Unilever Caribbean posts TT$18.6 million net profit for 2020Friday, April 09, 2021
After an expensive restructuring of its home-care portfolio in 2019, Unilever Caribbean Limited returned to a profitable path as it recorded a net profit of TT$18.6 million ($399 million) for its 2020 financial year (FY) ending December 31, compared to a TT$75.9 million loss in 2019.
The manufacturing and distribution giant, known for several widely known brands in personal care and food products, saw revenue increase by two per cent to TT$290 million ($6.2 billion) in what was described as a challenging environment as stated in the company's audited financial report released last week.
Despite the difficulty faced due to the novel coronavirus pandemic, the company was able to contain its cost of sale expense and improve its gross margin along with gross profit which increased by 24 per cent to TT$130.4 million. Even with slightly higher selling and distribution costs, the reduction in administrative expenses and reversal on impairment credit losses left its operating profit at TT$22 million versus the TT$464,000 in the prior FY.
Due to these positive results, the company's profit before taxation grew to TT$24.9 million, the highest it's been since the 2017 FY. With a net profit and improved other comprehensive income, total comprehensive income closed out the period at TT$31.4 million along with an earnings per share of TT$0.71.
Total assets dropped by six per cent to TT$436.6 million ($9.4 billion) as the company's current assets fell by 15 per cent due to lower inventories and related companies, while non-current assets grew by 10 per cent from the improvement in the retirement benefits asset.
Cash increased by 218 per cent to TT$75.4 million ($1.62 billion). Total liabilities declined by 28 per cent to TT$145 million mainly due to the reduction in current liabilities covering trade payables and provisions for other liabilities. Equity rose by 12 per cent to TT$291.6 million as a result of stronger retained earnings.
Unilver Caribbean declared a TT$0.60 dividend totalling TT$15.7 million which is the first dividend since the 2019 FY, performing better than its parent Unilver Group which saw a two per cent reduction in revenue to €50.7 billion and net profit attributable to shareholders marginally decline to €5.6 billion.
Unilver Group noted that this was mainly as a result of unfavourable currency impacts across its beauty, food, and home care segments. Despite this result, underlying sales growth was positive across all segments with more e-commerce sales driving future performance in the current stay-at-home environment compounded by heightened sanitation needs.
“As consumer demand shifted more towards cleaning and personal care, the company was able to respond with the launch of many impactful innovations throughout the year, such as the new anti-bacterial variants and the introduction of Dove Baby and Suave Kids. The value and affordability portfolio has delivered continuous growth through an expanded assortment and enhanced distribution capabilities,” Rodrigo Sotomayor, chairman of Unilever Caribbean, stated in the report.
“Looking ahead, even though conditions are expected to remain challenging, it is clear that as a nation we will keep living with the effects of COVID-19 for some time. The company has already demonstrated that it possesses the ability to withstand difficult challenges and emerge even stronger from it. We will keep focusing on delivering sustainable and profitable growth, while ensuring the health and safety of our staff,” Sotomayor added.
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