Unilever Nepal’s Profit Drops by 43% as Sales Revenue Declines

Unilever Nepal has reported a 43% decline in net profit in the first quarter of the current fiscal year. According to the company’s financial report, the net profit for the period stands at Rs. 30 crore, compared to Rs. 52 crore 69 lakh in the same quarter last fiscal year.

The sharp decline in profit is primarily due to a drop in sales and operating income. The company’s revenue, which was Rs. 2.25 billion in the first quarter of last year, has contracted to Rs. 2 billion in the current review period.

Meanwhile, the company’s total expenses have slightly increased. Total expenses rose from Rs. 1.63 billion last year to Rs. 1.66 billion this year, largely driven by the rising cost of raw materials.

With profit declining, the company’s Earnings Per Share (EPS) has also fallen sharply. The EPS for the first quarter stands at Rs. 326, while the annualized EPS is Rs. 1,884. In the same period last year, the annualized EPS was Rs. 2,096, indicating pressure on the company’s profitability.

Despite falling profit, the company’s net worth per share has increased, rising from Rs. 5,836 last year to Rs. 6,033 this year. Unilever Nepal, with a paid-up capital of Rs. 9 crore 21 lakh, has accumulated earnings of Rs. 5.43 billion.

Unilever Nepal remains one of the most valuable companies in the Nepalese stock market. Its shares are currently trading at Rs. 46,500 per unit.