Unilever Consumer Care shares soar 26% in 10 sessions
Shares in Unilever Consumer Care Limited surged 26% in the first 10 sessions of this month, according to the Dhaka Stock Exchange (DSE).
The DSE's data shows that the share price rose from Tk2,002.4 each on 2 June to Tk2,529.1 on 20 June, marking the highest level in a year for the multinational company.
In terms of prices, the stock of Unilever Consumer Care – previously operating as GlaxoSmithKline (Bangladesh) – ranks as the second most valuable share on the country's bourse.
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Meanwhile, another multinational, Reckitt Benckiser (Bangladesh) PLC, holds the most valuable stocks, with each share priced at Tk4,499.9 on 20 June, according to the DSE.
Unilever Consumer Care is considered one of the fundamentally strong stocks in the country's capital market, known for its consistent profitability and generous dividends to shareholders.
The company has a robust market presence in the health drinks sector with its flagship brand, Horlicks.
In pursuit of potential returns and to strengthen its portfolio, the Investment Corporation of Bangladesh (ICB) has increased its investment by acquiring more shares from the secondary market.
Over the past two months leading up to June, the state-owned non-bank financial institution, which plays a pivotal role in supporting the capital market, acquired a 4.63% stake in Unilever Consumer Care.
The ICB purchased a total of 8.93 lakh shares, amounting to approximately Tk188 crore, through block market transactions at the country's premier bourse. By the end of May, ICB's holdings in Unilever Consumer Care had increased to 8.32%, following purchases of 37,382 shares in April and 8.55 lakh shares in May.
In the first quarter of 2024, Unilever Consumer Care reported a 13% decline in revenue to Tk93.98 crore compared to the same period the previous year, while its net profit surged by 11% to Tk22.38 crore, according to its financial statements.
The company attributed this improvement in earnings per share (EPS) to efficiency gains in operating expenses, an increase in net finance income, one-off benefits from the reassessment of past liabilities and obligations, and a one-off waiver of technology and trademark royalties granted by the parent company.
In 2023, Unilever Consumer's net profit rose to Tk96.15 crore from Tk73.04 crore in 2022, and it paid a total cash dividend of 300% for the year.
In 2020, Unilever Overseas Holdings BV acquired GlaxoSmithKline Bangladesh Ltd's health food and drinks portfolio, which includes popular brands like Horlicks and Boost.
Unilever acquired 98.75 lakh shares from Setfirst Ltd, a sister concern of GSK, at a price of Tk2,046.3 per share, resulting in a total transaction value of Tk2,020.75 crore. As a result of this acquisition, GlaxoSmithKline Bangladesh Ltd was converted into Unilever Consumer Care.
