Unilever Caribbean Ltd. has recorded revenue of $147.6 million for the six months ended June 30. This represented a 7.1 per cent increase when compared to the same period in 2019 ($137.8 million).
In the company’s financial statements, Chairman Rodrigo Sotomayor said: “The company delivered improved top and bottom line results in H1 (Half One) 2020.”
He added that the increase in revenue was driven by strong year-to-date growth in all categories.
Sotomayor continued to note that the impact of the recent restructuring initiatives is reflected in the Gross Profit Improvement by 29.9 per cent to $65.9 million and an increase in the Profit Before Tax (PBT) to $8.5 million, from $1.0 million a year ago.
He added: “Continued disciplined cash flow management improved the cash position by 86 per cent to $32.7 million.”
Meanwhile, Unilever’s second quarter (Q2) 2020 Revenue was $66.2 million, a decline of 9.1 per cent versus Q2 2019’s $72.8 million.
The chairman indicated that this was impacted by the exit of sales to related companies ($3.7 million in Q2-2019) and declines in Unilever’s Homecare category as the trade and consumers adjusted purchase patterns following the late first quarter (Q1) surge.
Sotomayor revealed that logistics transition costs increased Cost of Sales by $6 million in Q2, but Gross Margin nonetheless improved to 43.4 per cent vs 37.9 per cent in Q2-2019. He added that Half-year Gross Margin also increased to 44.7 per cent up from 36.8 per cent a year ago.
While Unilever’s Selling and Distribution expenses increased, its Administrative expenses were significantly reduced.
According to Sotomayor, the company also incurred $2.2 million in asset write-downs from proceeds of sales that were less than the estimated net realisable value, initially charged to restructuring expenses in 2019.
Moreover, PBT for Unilever’s Q2 was $1.9 million compared to a Loss before Tax of $1.0M the year before.
Sotomayor expressed that the company launched impactful innovations such as anti-bacterial variants within its QUIX and CIF portfolios and has entered new customer segments with BABY DOVE and SUAVE KIDS, “creating avenues for growth which will be supported by increased Marketing Investing.”
He said that the Value and Affordability portfolio is delivering “accretive growth” and will continue to be developed through an expanded assortment and enhanced distribution capabilities.
The Chairman also asserted that the company will continue to prioritise the safety of its employees in the current challenging times, while focusing on draining volume-led profitable growth, operational excellence and further strengthening of its cash position.