Food & Personal Care-Products: UNILEVER PAKISTAN LIMITED - Half Year Ended June 30 2004

This subsidiary company of a British multinational company is incorporated in the province of Sindh. At the apex of the company's Board of Directors sits Chairman and Chief Executive. Ms Musharaf Hai, Peter I. Harvey is the Chief Financial Officer and Executive Director.
The company's registered office is located at Avari Plaza Fatima Jinnah Road Karachi.
Unilever Pakistan Ltd was listed at Karachi Stock Exchange in 1980. The share in the company is considered blue chip because it carries very high premium at the stock market. The par value of Unilever share is Rs 50. But at present the market value of the share is Rs 1484 per share, which is 29.7 times of the par value. During the last one year the price of the share went up from Rs 1400 to Rs 1635 per share.
It has highly attractive profit distribution profile, which can be seen from the dividend payouts in the past. In 2002 the company had declared dividend @ 276% whereas in 2003 the payout was @ 252%. For the half-year ended June 30, 2004 (HY 2003-04), the company declared interim dividend at 110% (HY 2002-03: @ 116%).
A lower dividend payout during the period under review can be attributed to lower financial results.
In this period the company registered sales at Rs 9.747 billion (HY 2002-03: Rs 10.636 billion), trading profit at Rs 2.823 billion (HY 2002-03: Rs 3.482 billion) showing decline by 8.35% and 18.91% respectively compared to the corresponding figures recorded in the same period last year (SPLY).
The trading margin was down by 3.76 percentage points. However the financial charges were slashed by more than half of SPLY. Additionally other income at 202.74 million was 3.5 tons of the figure posted in the SPLY.
The company has nominal long term debts. But current ratio is below, one, hence shows that liquidity position should be further improved. The company's net profit after taxation amounted to Rs 643.36 million registering short fall of Rs 210.43 million compared to net profit at Rs 853.79 million posted in the SPLY.
The company's ice cream business improved by 21%. Margins have been impacted due to higher tea input costs.

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Performance Statistics                (Million Rupees)

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Balance sheet                                  -As At-

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                                  June 30  December 31

                                     2004         2003

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Share Capital-Paid-up:             669.48       669.48

Reserves & Profit:                 352.52       439.93

Shareholders Equity:             1,022.00     1,109.41

Surplus on Revaluation of

 Fixed Assets:                      18.97        19.37

L T Debts:                          11.54            -

Deferred Liabilities:              165.09       152.66

Current Liabilities:             4,970.68     5,539.51

Tangible Fixed Assets:           1,602.70     1,444.88

Investments:                        95.20        95.20

L T Loans:                         112.82        87.54

L T Deposits & Prepayments:         89.33        97.25

Deferred Cost:                     102.90       137.20

Staff Retirement Benefits:         183.99       155.91

Current Assets:                  4,001.34     4,802.97

Total Assets:                    6,188.28     6,820.95

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Profit & Loss A/c For the

 Half Year Ended June 30             2004         2003

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Sales:                           9,747.34    10,635.88

Trading Profit:                  2,823.34     3,481.87

Operating Profit:                  883.58     1,449.82

Financial (Charges):               (20.79)     (49.91)

Other Income:                      202.74        57.23

Profit Before Taxation:            958.45     1,319.53

Profit After Taxation:             643.36       853.79

Interim dividend @ 110%

 (2003 @ 116%):                    731.16       771.04

Earnings Per Share (Rs) 50:         48.39        64.22

Share Price (Rs) on:   6-12-04:  1,484.00            -

Price/Earning Ratio:                30.66            -

Book Value of Share (Rs):           76.33        82.86

Debt/Equity Ratio:                   1:99        0:100

Current Ratio;                       0.88         0.87

Trade Profit Margin (%):            28.97        32.73

Net Profit Margin (%):               6.60         8.03

R O A (%):                          10.40        12.52

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