The Kathmandu Post reported on November 22 that the "Generation Z protests" in Nepal have caused losses of billions of rupees, severely impacting the profits of multinational companies in the country. Unilever's latest financial report in Nepal shows that its net profit fell by 43% compared to the previous quarter, reaching only 300 million rupees (Rs 300 million), and revenue for the first quarter of the 2025 fiscal year also declined by 11.01%. Analysts believe that on one hand, the "Generation Z protests" have caused large-scale destruction of Unilever's retail network, forcing the closure of multiple stores at key retailers in Nepal, compounded by a paralyzed supply chain, leading to a sharp decline in sales of related brands. On the other hand, the Indian government's reduction in goods and services tax (GST) has increased pressure on the "gray market," causing a surge in parallel imports of personal care products such as soap in Nepal (Parallel import refers to importing non-counterfeit products from other countries without the permission of the intellectual property owner), which further squeezes the survival space of legitimate channels, increasing the difficulty of Unilever's operations in Nepal. It is reported that the international credit rating agency Fitch has given Nepal a "BB-" (classified as "non-investment grade", indicating that its risk is higher than investment-grade countries) sovereign credit rating for two consecutive years. Analysts point out that although Nepal has sufficient foreign exchange reserves, which is beneficial for the repatriation of foreign capital profits, challenges such as political instability, weak governance, and delayed structural reforms may still hinder its improvement in investment ratings.
Original article: www.toutiao.com/article/1849689359437897/
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