Unilever Caribbean Limited
Unaudited Financial Statements
for the Half Year ended 30 June, 2023
CHAIRMAN'S REVIEW
For the six-month period ending June 30, 2023, the Company reported a Profit after tax of $5.2m which was an increase of 141% over the same period last year. This result was despite revenue of $119.3m, which was a decrease of 7.2% from the prior comparative period because of lower sales in the local market with a marginal decline of in the regional markets. This revenue performance was mainly stymied by changes within market forces arising from the prolonged impact of a high inflationary environment.
Despite the reduction in revenue, the company saw an improvement in the Gross Margins over the last 2 quarters and the Company has begun to recognize anticipated improvement in material and freight costs.
Operating profit before restructuring costs decreased by $6.5m compared to the prior comparative period mainly due to shortfalls in revenue, offset by 16% savings in operating expenses. In the second quarter, the Company continued to improve efficiency and stringently manage costs resulting in a 24% reduction of reduced operating expenses compared to Q1 2023.
Consistent with our focus on accelerating profitable growth for sustainable returns, there were notable shifts in category mix. In the second quarter, Home Care represented 37% of total revenue compared to 55% in the prior comparative period and 43% in Q1 2023. Given the continued portfolio shift, the Beauty & Personal Care pillar now represents 52.8% of total revenue and has delivered a strong YOY growth throughout the period driven by exceptional performance of our globally sourced portfolio.
The Export market performance was impacted by the prevailing inflationary challenges plaguing the Home Care category and as in the local market, Beauty & Personal Care also reported healthy growth in the second quarter.
Despite the current fluid environment, UCL maintains a solid financial position, with healthy working capital and retained earnings, with an Earnings Per Share (EPS) of $0.30 for the period ending June 30, 2023.
Given the financial performance, the Board of Directors is pleased to approve an interim dividend of $0.08 for the half year.
Recent movements within the Unilever Group's Global and regional structures, including the resignation of my predecessor has provided for my appointment as Chairman effective July 14, 2023, as well as the welcoming of two new directors to fill vacancies. I look forward to leading the Board at this critical juncture of the journey of the Company creating shareholder value and being Purpose Led and Future Fit.
Daniela Bucaro
Chairman
SUMMARY STATEMENT OF FINANCIAL POSITION | |||
Unaudited as at | Audited | ||
30 Jun 2023 | 30 Jun 2022 | 31 Dec 2022 | |
$'000 | $'000 | $'000 |
Expressed in Trinidad & Tobago Dollars
SUMMARY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Unaudited 3 months ended | Unaudited 6 months ended | Audited | |||
30 June 2023 30 June 2022 | 30 June 2023 30 June 2022 | 31 Dec 2022 | |||
$'000 | $'000 | $'000 | $'000 | $'000 | |
Revenue | 49,226 | 66,381 | 119,283 | 128,534 | 256,146 |
Cost of sales | (28,935) | (35,704) | (73,467) | (70,042) | (150,897) |
Gross profit | 20,291 | 30,677 | 45,816 | 58,492 | 105,249 |
Selling and distribution costs | (11,376) | (17,442) | (27,737) | (34,096) | (60,554) |
Administrative expenses | (4,108) | (4,436) | (8,438) | (8,823) | (16,252) |
Impairment reversal on trade receivables | 121 | 88 | 434 | 397 | 358 |
Gain on disposal of plant and equipment | - | 652 | - | 652 | - |
Operating profit before restructuring cost | 4,928 | 9,539 | 10,075 | 16,622 | 28,801 |
Restructuring cost comprising of: | |||||
Net gain of property, plant and equipment | - | - | - | - | 4,493 |
Manpower cost | - | (32,577) | (1,256) | (32,577) | (31,528) |
Gain on curtailment and settlement | - | - | - | - | 10,752 |
Other expenses | (1,462) | (4,865) | (2,412) | (5,253) | (14,272) |
Restructuring cost | (1,462) | (37,442) | (3,668) | (37,830) | (30,555) |
Operating profit/(loss) after restructuring | 3,466 | (27,903) | 6,407 | (21,208) | (1,754) |
Finance income/(expense) | 771 | 6 | 1,344 | (159) | 101 |
Other income | 443 | 2,423 | 974 | 4,371 | 7,028 |
Profit/(loss) before taxation | 4,680 | (25,474) | 8,725 | (16,996) | 5,375 |
Taxation (expense)/credit | (1,894) | 7,300 | (3,503) | 4,396 | 4,394 |
Profit/(loss) for the period | 2,786 | (18,174) | 5,222 | (12,600) | 9,769 |
Other comprehensive income/(loss) | |||||
Re-measurements of defined benefit asset/liability | - | - | - | - | (51,857) |
Related tax | - | - | - | - | 15,557 |
Total comprehensive income/(loss) for the period | 2,786 | (18,174) | 5,222 | (12,600) | (26,531) |
Earnings/(loss) per share | 0.11 | (0.69) | 0.20 | (0.48) | 0.37 |
ASSETS
Non-current assets
Property, plant and equipment Retirement benefit asset Deferred tax asset
Current assets
Inventories
Taxation recoverable
Trade and other receivables Value added tax recoverable Due from related companies Cash at bank and in hand Assets held for sale
Total assets
EQUITY AND LIABILITIES
EQUITY
Stated capital
Property revaluation surplus Retained earnings
Total equity
LIABILITIES
Non-current liabilities
Retirement and termination benefit obligation
Lease liabilities Deferred tax liabilities
Current liabilities
Trade and other payables Lease liabilities
Provisions for other liabilities Due to related companies Value added tax payable
Liabilities directly associated with the assets held for sale
Total liabilities
Total equity and liabilities
5,428 | 6,431 | 4,285 |
101,157 | 140,147 | 99,142 |
12,350 | 12,993 | 14,250 |
118,935 | 159,571 | 117,677 |
29,053 | 29,355 | 29,250 |
7,575 | 7,575 | 7,575 |
34,204 | 109,763 | 60,486 |
408 | 7,968 | 3,502 |
44,349 | 85,494 | 74,491 |
155,146 | 92,337 | 171,778 |
- | 58,025 | - |
270,735 | 390,517 | 347,082 |
389,670 | 550,088 | 464,759 |
26,244 | 26,244 | 26,244 |
- | 36,568 | - |
243,058 | 288,682 | 311,319 |
269,302 | 351,494 | 337,563 |
3,049 | 6,506 | 3,085 |
1,752 | 307 | 1,979 |
29,865 | 41,354 | 29,105 |
34,666 | 48,167 | 34,169 |
57,952 | 65,920 | 72,280 |
2,532 | 2,414 | 711 |
2,184 | 43,601 | 5,158 |
22,915 | 35,543 | 14,878 |
119 | - | - |
- | 2,949 | - |
85,702 | 150,427 | 93,027 |
120,368 | 198,594 | 127,196 |
389,670 | 550,088 | 464,759 |
SUMMARY STATEMENT OF CASH FLOWS
Unaudited 3 months ended | Unaudited 6 months ended | Audited | |||
30 June 2023 30 June 2022 | 30 June 2023 30 June 2022 | 31-Dec-22 | |||
$'000 | $'000 | $'000 | $'000 | $'000 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Profit/(loss) before taxation | 4,680 | (25,474) | 8,725 | (16,996) | 5,375 |
Adjustment for items not affecting working capital | 1,078 | (1,822) | 174 | (1,368) | (17,511) |
5,758 | (27,296) | 8,899 | (18,364) | (12,136) | |
Net increase in working capital | 45,406 | 98,420 | 49,992 | 108,063 | 118,327 |
Cash flows generated from operating activities | 51,164 | 71,124 | 58,891 | 89,699 | 106,191 |
Taxation & interest paid | (431) | (658) | (1,401) | (1,289) | (2,237) |
Net cash generated from operating activities | 50,733 | 70,466 | 57,490 | 88,410 | 103,954 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Interest received | 847 | - | 1,532 | 39 | 551 |
Purchase of plant and equipment | - | - | - | - | (1,434) |
Proceeds from sale of property, plant and equipment | - | 773 | - | 773 | 67,345 |
Net cash generated from investing activities | 847 | 773 | 1,532 | 812 | 66,462 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Dividends paid | (73,483) | (112,849) | (73,483) | (112,849) | (112,849) |
Payment of lease liabilities | (928) | (1,084) | (2,171) | (2,168) | (3,921) |
Net cash flows used in financing activities | (74,411) | (113,933) | (75,654) | (115,017) | (116,770) |
(Decrease)/increase in cash and cash equivalents | (22,831) | (42,694) | (16,632) | (25,795) | 53,646 |
Cash and cash equivalents at beginning of period | 177,977 | 135,031 | 171,778 | 118,132 | 118,132 |
Cash and cash equivalents at end of period | 155,146 | 92,337 | 155,146 | 92,337 | 171,778 |
Represented by: | |||||
Cash at bank and in hand | 155,146 | 92,337 | 155,146 | 92,337 | 171,778 |
SUMMARY STATEMENT OF CHANGES IN EQUITY
Property | ||||
Stated | Revaluation | Retained | Total | |
Capital | Surplus | Earnings | Equity | |
$'000 | $'000 | $'000 | $'000 | |
Balance as at 1 January, 2023 | 26,244 | - | 311,319 | 337,563 |
Total comprehensive income for the period | - | - | 5,222 | 5,222 |
Dividends paid | - | - | (73,483) | (73,483) |
Balance as at 30 June, 2023 | 26,244 | - | 243,058 | 269,302 |
Balance as at 1 January, 2022 | 26,244 | 36,568 | 414,131 | 476,943 |
Total comprehensive loss for the period | - | - | (12,600) | (12,600) |
Dividends paid | - | - | (112,849) | (112,849) |
Balance as at 30 June, 2022 | 26,244 | 36,568 | 288,682 | 351,494 |
Balance as at 1 January, 2022 | 26,244 | 36,568 | 414,131 | 476,943 |
Total comprehensive loss for the period | - | - | (26,531) | (26,531) |
Dividends paid | - | - | (112,849) | (112,849) |
Transfer | - | (36,568) | 36,568 | - |
Balance as at 31 December, 2022 |
Jean-Marc | ging Director | Nichector |
26,244 | - | 311,319 | 337,563 |
NOTES TO THE SUMMARY FINANCIAL STATEMENTS
- General Information - Unilever Caribbean Limited is incorporated in the Republic of Trinidad and Tobago, and its registered office is located at Albion Plaza, Third Floor, 22-24 Victoria Avenue, Port of Spain. The Company is listed on the Trinidad and Tobago Stock Exchange. The principal business activity is the sale of home care, personal care and food products. It is a subsidiary of Unilever Overseas Holdings AG, which is a wholly owned subsidiary of Unilever PLC, a company incorporated in the United Kingdom.
- Basis of preparation - These summary financial statements have been derived from the audited financial statements for the year ended 2022, which were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard Board (IASB).
3. Significant accounting policies - The financial statements have been prepared under the historical cost convention, as modified by the revaluation of freehold properties and re-measurements of retirement and termination benefit obligations. The principal accounting policies applied in the preparation of these summary financial statements are consistent with those disclosed in the audited financial statements as at and for the year ended December 31, 2022, and have been consistently applied to all periods presented, unless otherwise stated.
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Unilever Caribbean Ltd. published this content on 11 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2023 16:43:06 UTC.