Shares of Unilever Consumer Care Limited have surged by 26% over the first ten sessions of June, according to data from the Dhaka Stock Exchange (DSE).
The DSE reports that the share price climbed from Tk2,002.4 on June 2 to Tk2,529.1 on June 20, reaching its highest level in a year. This makes Unilever Consumer Care the second most valuable stock on the exchange, surpassed only by Reckitt Benckiser (Bangladesh) PLC, whose shares were priced at Tk4,499.9 on June 20.
Unilever Consumer Care, formerly known as GlaxoSmithKline (Bangladesh), is recognized for its strong market fundamentals, consistent profitability, and generous dividends. The company holds a significant presence in the health drinks sector with its flagship brand, Horlicks.
Read more: PriyoShop expands operations across Bangladesh, strengthening support for MSMEs
In a strategic move to enhance its portfolio, the Investment Corporation of Bangladesh (ICB) has increased its investment in Unilever Consumer Care, acquiring a 4.63% stake over the past two months. The state-owned financial institution purchased 893,000 shares for approximately Tk188 crore through block market transactions. By the end of May, ICB’s stake in the company had risen to 8.32%, with 37,382 shares bought in April and 855,000 shares in May.
Despite a 13% decline in revenue to Tk93.98 crore in the first quarter of 2024 compared to the same period in the previous year, Unilever Consumer Care’s net profit increased by 11% to Tk22.38 crore. The company attributed this profit growth to efficiency gains in operating expenses, increased net finance income, reassessment of past liabilities, and a one-off waiver of technology and trademark royalties from the parent company.
Read more: BSRM to Launch New $217 Million Steel Plant This Month, Aiming for 34% Market Share
In 2023, Unilever Consumer Care’s net profit rose to Tk96.15 crore from Tk73.04 crore in 2022, resulting in a total cash dividend payout of 300% for the year.
The transformation of GlaxoSmithKline Bangladesh Ltd into Unilever Consumer Care occurred in 2020 when Unilever Overseas Holdings BV acquired the health food and drinks portfolio, including popular brands like Horlicks and Boost. Unilever purchased 9.875 million shares from Setfirst Ltd, a GSK affiliate, at Tk2,046.3 per share, totaling Tk2,020.75 crore.
