Apr 2017 Financial News

Unilever's income dips

Apr 03, 2017

Unilever Caribbean Ltd last week reported a 4.6 per cent decline in its profit after tax for the period ending December 31, 2016, although its revenues increased by 3.2 per cent to $566 million. The company reported $42.5 million in Profit After Tax in 2016 and $44.6 million in 2015.

Relying on its brand strength and competences, Unilever Caribbean chairman Pablo Garrido in his statement accompanying the audited financial statements, said despite the difficult economic environment, Unilever Caribbean closed the financial year with another solid performance.

Commenting on the company’s external environment, he said the shortage of US dollars as well as its depreciation, ripped into the bottom line of the business.

“The difficulties in sourcing foreign exchange have been an ongoing challenge, coupled with the depreciation against the US dollar, which has put additional pressure on margin delivery.”

The liquidity position of the company declined as it reported cash and cash equivalents of $57.4 million in 2016 compared to $91.8 million in 2015.

“Cash flows have decreased aligned to our plans to invest in the aggressive capital expenditure programme that I have communicated previously during the year. I am pleased to announce that the first major stage of this programme was completed successfully in quarter four with limited business interruption. However, we have seen increased startup costs in quarter four which is expected to also impact quarter one 2017 performance,” Garrido said.

Its assets position improved from $430.8 million in 2015 compared to $447 million in 2016. Earnings per share decreased in 2016 as the company indicated that it moved from $1.70 in 2015 compared with $1.62 in 2016.

Overall, Garrido said: “The headwinds we have seen in 2016, are expected to continue in the coming year with the environment in T&T showing no sign of recovery in the short-term. Although trading conditions are expected to remain tough for some time to come we continue to build the foundation for a stronger business into the future.”

“Unilever remains committed to investing in technology and manufacturing operations that will yield benefits well into the future. While projections for the year remain guarded, I am optimistic that the strength of our brands and the resolve of our people will craft the conditions for another good performance,” Garrido said.

Source:
Trinidad Guardian, A14
Monday April 3, 2017