Unilever Pakistan continues to deliver double digit growth in the first half of 2007
Turnover growth for Q2 2007 is 12%. Markets remain extremely competitive requiring strong and sustained investment behind our brands, resulting in higher marketing and advertising costs and lower post tax profits. The unprecedented price hike in key raw material costs, especially in soap oils and dairy products, is putting tremendous pressure on margins. This, coupled with the recent 1% Federal Excise Duty on virtually all products will be difficult to recover in the short term. Severe weather and at times, uncertain market conditions are having an impact on the business performance.
Home & personal Care
In key categories we have grown or held market share, delivering 21% turnover growth. This is attributable to higher volumes of Lux, Surf Excel, and Sunsilk. Examples are the brighter packs of Surf Excel and the high impact “Pinkfull" Lux variant. We have introduced a premium anti-dandruff shampoo, Clear, supported by a very visible advertising campaign.
Beverages
Sales grew by 2% and we held market share. Lipton continues to grow through effective on-ground activations and consumer promotions such as "Tea Bag Mug" offer. Tea leaf prices have continued to fall from the peaks of 2006 and we have reduced consumer prices. With restored margins we are able to increase advertising behind Brooke Bond Supreme.
Ice cream
Sales in Q2 were restricted by delays in the factory capacity upgrade (now fully completed) and an early start to the monsoon season combined with acute power blackouts in Karachi.
Earnings per share
Earnings per share for the half year ended June 30, 2007are Rs. 64.85 (2006: Rs. 66.40).
Half Year ended | |||
June 30, | June 30, | ||
2007 | 2006 | ||
------Rupees in Millions------ | |||
Sales-Net | 11,595 | 10,354 | |
Less: Cost of Sales | 7,071 | 6,457 | |
Gross Profit | 4,524 | 3,897 | |
Less: Distribution, Admin & Other Operating Expenses | 3,221 | 2,632 | |
Add: Other Operating Income | 112 | 126 | |
1,415 | 1,391 | ||
Less: Finance Costs | 81 | 48 | |
Profit before Taxation | 1,334 | 1,343 | |
Less: Taxation | 472 | 460 | |
Profit after Tax | 862 | 883 | |
EPS- basic (Rupees) | 64.85 | 66.40 | |
Interim dividend
In view of the financial results for the half year January to June 2007, the Directors have recommended an interim Dividend of Rs.60 per ordinary share of Rs 50.
Closure of share transfer books
The Share Transfer Books of the Company will be closed from 18th August 2007 to 24th August 2007 (both days inclusive), and will re-open on 25th August 2007.
