Unilever Consumer Care Limited (UCCL) reported a steep decline in earnings for the first half of 2026, as weaker consumer spending amid persistent inflation continued to weigh on demand for its health nutrition products.

According to the company’s unaudited financial statements, net profit after tax fell 48 percent year-on-year to Tk19.9 crore in the January-June period from the corresponding period a year earlier. Revenue also declined 8 percent to Tk141 crore, while earnings per share (EPS) dropped to Tk10.33.

The maker of Horlicks and Boost said its core health food drinks business remained under pressure, with revenue from the segment falling 9.63 percent during the six-month period. In contrast, its glucose powder business posted modest growth, with revenue rising 2 percent to Tk19.37 crore, offering limited support to overall sales.

The company’s performance deteriorated further in the April-June quarter. Quarterly revenue fell 8 percent year-on-year to Tk72.96 crore, while net profit plunged 68 percent to Tk7.79 crore, reflecting continued weakness in consumer demand.

In a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE), UCCL attributed the decline in EPS to lower sales and the impact of a high comparison base. During the first half of 2025, the company had booked a one-time gain after reassessing its trademark and technology royalty obligations, which boosted earnings and made this year’s comparison less favorable.

Market observers said elevated food inflation has continued to erode consumers’ purchasing power, leading many households to reduce discretionary spending on premium nutritional products and health beverages.

Despite the decline in profitability, the company generated stronger operating cash flows. Net operating cash flow per share increased to Tk30.13, mainly due to lower operating cash outflows following the settlement of most Usance Payable at Sight (UPAS) letters of credit in the previous year.

Meanwhile, net asset value (NAV) per share fell 27 percent to Tk84.62, largely reflecting the dividend distributed for the 2025 financial year.

UCCL shares ended 0.98 percent lower at Tk2,048 on the DSE, valuing the company at approximately Tk3,947 crore.

The board also announced several management changes. Ruhul Quddus Khan, Managing Director of Unilever Bangladesh Limited, has been appointed Chairman of Unilever Consumer Care for a three-year term effective July 28, replacing Masud Khan, who resigned after taking over as Chairman of the Bangladesh Securities and Exchange Commission (BSEC).

Additionally, Samsuddoha Nayeem has been appointed Head of Finance, while Sharmin Akter will serve as Company Secretary.

The board further approved an unsecured intercompany loan facility of up to Tk150 crore for related-party Unilever Bangladesh Limited to finance working capital requirements. The facility will remain available for 24 months, with each borrowing limited to six months and extended on arm’s-length commercial terms.