Some of Unilever products
The company has now reported that in the second quarter the issues were resolved and service levels are now fully restored to our customers, thanks to enormous effort by employees succeeded in bringing about the turnaround. Despite these efforts, half year sales declined by 10.3%, driven predominantly by the declines in the first quarter performance. Profit after tax fell to $18.3 million down from $30.8 million in the prior year six months period. Earnings per share were 70 cents compared to 117 cents in the prior year. For the June quarter, the company generated revenues of $140.5 million versus $148 million in 2014 resulting in aftertax profit hitting $12.5 million from $17 million in 2014. A fall in selling, distribution and administrative cost in the 2015 second quarter versus 2014 helped cushioning the fall off in revenues and decline in gross profit that fell by $8.6 million, in 2014 there was $5.4 million in other revenues with none being earned in 2015.
“Looking forward we expect the challenges of the regional economies to impact our growth prospects. In Trinidad and Tobago the uncertainty of the upcoming elections continues to affect the business environment. Regionally, recovery continues to be slow due to the depreciation of local currencies and shortage of US dollars across markets, which is cause for concern. While the recovery from the first half of the year remains a challenge, Unilever Caribbean is optimistic that the investment in our new IT systems and infrastructure will build the foundation for future growth. However, at this time the outlook for the rest of the year remains moderate” Pablo Garrido, Chairman of the company reported to shareholders.
The stock last traded on the at $67 placing the PE at over 30 times earnings.
[…] Unilever continues to face challenges in the Caribbean market with decline in sales and profit for 2015. Despite the negative development investors keep on pushing the stock to new highs just about every time it trades. For the third quarter revenues fell 3.5 percent to TT$139 million from $144 million last year, which is better than the 5 percent fall suffered in the second quarter. The company’s revenues have been recovering, from a 10 percent fall for the six months revenues are now off by 8 percent for the nine months, to reach $393 million, down from $427 million in 2014. Profit fell from $13.9 million to $10.45 million for the third quarter and from $45 million for the 2014 nine months period to $29 million for 2015. Profit before taxation declined even more than the after tax profit with a fall from $19.2 million down to $13.9 million or 27.6 percent. Earnings per share amounts to 40 cents in the quarter and $1.10 for the nine months. In 2014 Unilever earned $2.52 per share. Unilever spent 13.8 percent more on selling and distribution this contrast with a 3 percent increase for the nine months which all the increase coming in the third quarter moving the amounts spent to $93.3 million. Administrative cost fell $3 million in the last quarter to $5.8 million and is down nearly $5 million in the nine months to $21 million. The company had blamed the first quarter results as being negatively affected by computer glitzes from the software change over late in 2014. With the release of second quarter results the company had stated that “Looking forward we expect the challenges of the regional economies to impact our growth prospects. In Trinidad and Tobago the uncertainty of the upcoming elections continues to affect the business environment. Regionally, recovery continues to be slow due to the depreciation of local currencies and shortage of US dollars across markets, which is cause for concern. While the recovery from the first half of the year remains a challenge, Unilever Caribbean is optimistic that the investment in our new IT systems and infrastructure will build the foundation for future growth. However, at this time the outlook for the rest of the year remains moderate” Pablo Garrido, Chairman of the company reported to shareholders. The company’s stock traded on the Trinidad & Tobago Stock Exchange at $67.54. […]