Unilever Pakistan delivers Rs 4.094 billion profit after tax

Unilever Pakistan Limited has delivered profit after tax of Rs 4.094 billion in the year ended December 31, 2011, up 25 percent on previous year's profit of Rs 3.273 billion. The company's earning per share increased to Rs 308 in the period under review against Rs 246 in the same period a year back.
The board of directors of the company in its meeting held here on February 9, recommended final cash dividend of Rs 202 per ordinary share ie 404 percent. With the interim dividend of Rs 105 per ordinary share already paid during the year, the total dividend for the year 2011 amounts to Rs 307 per ordinary share of Rs 50 each against Rs 246 per ordinary share paid in 2010. Total profit distributed byway of dividend amounts to 99.7 percent in 2011 against 99.9 percent in 2010. The final dividend will be payable to the members on the number of ordinary shares held by them at the close of business on March 27.
According to the financial results sent to Karachi Stock Exchange, the company's sales increased by 16 percent to Rs 51.876 billion in 2011 against Rs 44.671 billion in 2010. The cost of sales increased to Rs 33.792 billion against Rs 30.094 billion.
The company said the operating conditions in Pakistan remained tough as economic growth for the second consecutive year was marred by floods, prolonged power outages, rising commodity costs and adverse security environment. Notwithstanding this, consumer demand remained resilient. Unilever further strengthened its foothold by launching seven new brands - the highest ever in a single year. The company now has a footprint that is significantly broader and a reach much deeper, helping millions of Pakistanis feel good, look good and get more out of life, it added.
Home and Personal Care continues to deliver double digit growth in key categories; laundry, hair care and skin care. Six new brand launches, product renovations and market activations continue to be the drivers. Beverages sales grew mainly on the back of price increases following an inflationary material cost environment, compounded by government levies. Smuggled tea continues to pose a threat to branded players; high government levies lead to high consumer price, deny the formal sector fuel to grow and provide smugglers incentive to evade.
Despite challenges, ice cream sales grew by 11 percent fuelled by strong innovation and launch of Fruttare. Greater focus on costs, a better product mix and pricing actions helped improve gross margins. Input cost continued to increase on the back of rising commodity costs, margins, however benefited from improved scale and timely but measured price corrections. This helped preserve consumer value. Greater scale and improved mix led to increase in gross and operating margins by 223bps and 73bps respectively, resulting in 25 percent higher profit after tax and earning per share. The company's profit before taxation increased to Rs 5.925 billion in 2011 as compared to Rs 4.780 billion in the year 2010.