UNILEVER PAKISTAN LIMITED COMPANY INFORMATION
BOARD OF DIRECTORS Mr. Ehsan A. Malik Mr. Imran Husain Mr. M. Qaysar Alam Ms. Shazia Syed Mr. Amir R. Paracha Ms. Fariyha Subhani Mr. Zaffar A. Khan Mr. Khalid Rafi COMPANY SECRETARY Mr. Amar Naseer AUDIT COMMITTEE Mr. Zaffar A. Khan Mr. Khalid Rafi Mr. M. Qaysar Alam Mr. Azhar Shahid AUDITORS Messrs A.F. Ferguson & Co. Chartered Accountants State Life Building No. 1-C I.I. Chundrigar Road Karachi. REGISTERED OFFICE Avari Plaza Fatima Jinnah Road Karachi - 75530 SHARE REGISTRATION OFFICE C/o Famco Associates (Pvt) Limited State Life Building No. 1-A I.I. Chundrigar Road Karachi. WEBSITE ADDRESS www.unileverpakistan.com.pk Chairman Member Member Secretary & Head of Internal Audit Chairman & Chief Executive Executive Director / CFO Executive Director Executive Director Executive Director Executive Director Non - Executive Director Non - Executive Director
UNILEVER PAKISTAN LIMITED Directors’ Review
Profit after tax and Earnings Per Share grew by 20.2% on the back of sales growth of 15.6%. The business benefited from higher scale following new brand and format launches, competitive pricing and tighter control over costs and working capital. Nine months ended September 30 2011 2010 Increase % Net Sales (Rs’000) Profit before taxation (Rs’000) Profit after taxation (Rs’000) Earnings per share (Rs) Home and Personal Care (HPC) HPC business registered a sales growth of 17.3% as a result of new brand and format launches in the nine months. Surf continues to consolidate its position as a value market leader despite stiff competition. Dove, Rin, Ponds and Fair and Lovely delivered robust volume growth backed by strong media campaigns (Time to Shine – Rin and Fairness Meter – Fair and Lovely). Beverages The formal Tea industry and our business continue to suffer from an uneven playing field. Pakistani consumers pay 50% more for tea than the rest of South Asia, due mainly to high government levies which we are lobbying to reduce. Tea is accorded an essential food status and taxed at 4% in India; Pakistani consumers bear 16% GST and 10% import duty. High government levies create incentive to evade taxes and porous borders make it easy to smuggle. Consequently more than half the tea consumed in the country is smuggled. Lower government levies will discourage this, bring all imports into the official net and neutralise impact on government revenue. Smuggled tea is often adulterated with harmful substances. Discouraging smuggling will also have a positive impact on quality of tea consumed. The successful ‘Sip of Inspiration’ campaign further strengthened Lipton’s brand equity. Supreme’s ‘Tandrust Rahein, Mast Rahein’ campaign continues to deliver positive results. Ice Cream Ice Cream sales grew by 12%. Greater focus on costs, a better product mix and pricing actions helped improve gross margins. Innovation continues to be at the heart of the category’s strategy and the recent launches Cornetto Mango Cream, Fruttare, Zapper, Fruity Fire & Badami tub which were well received by consumers. Spreads The Spreads business achieved double digit sales growth of 36% with volume coming through penetration into new towns, door to door sales and the ‘Growth meter II’ campaign. We continue to drive availability and visibility through the deployment of visi-coolers at retail outlets. Future Outlook This is the second consecutive year that the country is facing serious flooding where millions have been displaced and infrastructure disrupted. Demand for consumer goods has been severely impacted in the affected areas. As in the past, Unilever is working towards relief and rehabilitation through local authorities and its distributors. Increasing inflation, continued smuggling of tea, poor security environment and power outages continue to pose significant challenges to the business. Despite all the setbacks, we continue our growth journey by focusing on bigger innovations, improved execution. Our high...
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