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Unilever along the Eastern Main Road in Champs Fleurs, Trinidad and Tobago. (Photo: CNC3)

Unilever Caribbean’s exports drive up profits

Unilever along the Eastern Main Road in Champs Fleurs, Trinidad and Tobago. (Photo: CNC3)

Even with the challenges of constant lockdowns of Trinidad and Tobago’s domestic market, Unilever Caribbean continues to see improvements in its revenue.

For the second quarter ending June 30, 2021, Unilever Caribbean’s revenue rose to TT$68.52 million, reflecting a 3.5 per growth over the corresponding period in 2020.

“This was mainly driven by strong growth in the export markets, mostly within the beauty and personal care categories,” Chairman Rodrigo Sotmayor explained in his review.

Chairman of Unilever Caribbean Rodrigo Sotoayor (Photo: El Dinero)

“Sales in the home care category remain under pressure, especially in the local market, as the overall usage of the fabric cleaning products have decreased.”

Among Unilever’s personal care brands are Dove, Axe and Brut, with home care products including to Cif, Comfort and Sunlight.

Moreover, the reduction in Unilever’s cost of sales led to its gross profit increasing by 15 per cent to end at TT$33.09 million. A further decline in its selling and distribution costs resulted in its operating profit rising by 715 per cent, from TT$1.36 million to TT $11.05 million.

And despite a higher tax bill for the period, Unilever Caribbean’s net profit for the quarter increased by 426 per cent to TT$7.20 million ($159 million). Earnings per share for the quarter came out at TT$0.27.

Half-year results

For the six months, net profit climbed from TT$5.93 million to TT$15.51 million.

Total assets grew by five per cent to TT$449.73 million as cash effectively doubled to TT$74.37 million. As a result, Unilever Caribbean declared a dividend of TT$0.20, amounting to TT$5.25 million and payable on September 13. Total liabilities marginally declined to TT$158.39 million while shareholders equity rose by nine per cent to TT$291.35 million.

Unilever PLC’s revenue for the first six months slightly improved to €25.79 billion while its net profit attributable to shareholders fell to €3.12 billion. Its food and refreshment segment led the growth with its European market leading sales as the continent reopens.

— David Rose