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Tag: Unilever

  • Unilever Pakistan forecasts erosion in consumer purchasing power

    Unilever Pakistan forecasts erosion in consumer purchasing power

    KARACHI: Unilever Pakistan Foods Limited – fast-moving consumer goods company – on Monday said that high inflation to erode purchasing power of consumers.

    While presenting financial results for nine months period ended September 30, 2022, the company said Pakistan’s economic and operating environment remains challenging as the country continues to grapple with sustained double-digit inflation, low foreign exchange reserves and aftermath of recent floods.

    “The above factors are expected to result in a considerable overall economic slowdown and further erosion of purchasing power of the consumers.”

    It said that in the midst of the situation, the management remains committed to navigating the challenges and staying relevant to the consumer by leveraging the power of its brands, delivering delightful innovations and driving cost transformation. “We are confident that we will continue to deliver competitive, consistent, responsible and profitable growth benefitting all stakeholders,” the company added.

    The board of directors of the company met on October 24, 2022 and approved the un-audited condenses interim financial information for the nine months ended September 30, 2022.

    According to the company, despite challenging economic and political environment, the business continued its positive momentum and delivered a growth of 36.6 per cent with a healthy mix of pricing and volume.

    The growth was broad based with both retail and food solution business delivering consistent performance on the back of strong brand equity, innovations and wider distribution.

    “Inflationary headwinds resulted in a gross margin dilution of 202 basis points to 41.4 per cent. However, earnings per share grew by 33.3 per cent led by strong topline growth,” the company added.

  • Unilever Pakistan declares 38% growth in profit for 1HCY22

    Unilever Pakistan declares 38% growth in profit for 1HCY22

    KARACHI: Unilever Pakistan Foods Limited has declared 38 per cent growth in the net profit for the half year ended June 30, 2022.

    The company declared 38 per cent growth in profit before income tax at Rs3.34 billion for the half year ended on June 30, 2022 as compared with Rs2.42 billion in the same half of the last year.

    Unilever Pakistan declared basic and diluted earnings per share (EPS) at Rs524.86 for the half year ended on June 30, 2022 as compared with EPS of Rs380.11 in the same half of the last year, showing a decrease of 38 per cent.

    READ MORE: Standard Chartered Pakistan registers 84% growth in PBT during 1HCY22

    The company declared the total gross profit at Rs4.15 billion for the half year ended on June 30, 2022 as compared with Rs5.65 billion in the same half of the last year, showing an increase of 36 per cent.

    According to the financial results submitted to the Pakistan Stock Exchange (PSX), the board of directors met on August 26, 2022 and approved the financial result for the half year ended June 30, 2022.

    The Directors have not recommended a Second Interim Cash Dividend for the period ended June 30,2022. (Second Interim Cash Dividend for period ended June 30, 2021 of Rs.151/- i.e.1510 per cent per ordinary share of Rs.10 each)

    The business delivered another half of strong double digit sales growth of 35.2 per cent. The growth was consistent and competitive with a healthy mix of pricing and volume. Both segments delivered strong results fuelled by brand equity, wider reach and innovations. Despite cost head-wings, gross margin increased by 26 basis points (bps) to 43.6 per cent driven by improved fixed cost absorption. Earnings per share (EPS) increased by 38.1 per cent driven by growth and margin improvement.

    READ MORE: Pakistan State Oil’s profit surges by 224% to Rs95.72 bn

    Pakistan’s economic and operating environment remains challenging which is further aggravated by volatile commodity and forex outlook.

    Consequentially, inflation has reached unprecedented levels which is significantly affecting the purchasing power of the consumers, thus forcing them to make sharper choices by down trading and down grading.

    Also, recent floods in the country are expected to have a bearing on crops and therefore livelihoods of our rural population. All these factors are expected to result in a slow down of the economy.

    In the midst of this situation, the management remains committed to navigate the challenges and stay relevant to the consumer by leveraging the power of its brand, delivering delightful innovations, continuous efforts towards value for money proposition and driving cost transformation for efficiencies in the value chain.

    Our recent ‘Blazin’ noodles launch is a manifestation of our innovative mindset and commitment towards consumer preferences. We are confident that we will continue to deliver competitive, consistent, responsible and profitable growth benefitting all stakeholders.

  • Unilever Pakistan declares 55% growth in quarterly profit

    Unilever Pakistan declares 55% growth in quarterly profit

    KARACHI: Unilever Pakistan Foods Limited on Monday announced a sharp growth of 55 per cent in net profit for the quarter ended September 30, 2021. The company made a profit of Rs1.19 billion for the quarter July – September 2021 as compared with Rs767 million in the same quarter of the last year.

    The company declared Rs187.08 as earnings per share (EPS) for the quarter under review as compared with EPS of Rs120.52 in the same quarter of the last year.

    The board of directors of Unilever Pakistan Foods Limited in its meeting held on October 25, 2021 approved the un-audited condensed interim financial information for the nine months ended September 30, 2021.

    The after tax profit for nine months period ended September 30, 2021 has also surged by 45 per cent. The company announced the net profit of Rs3.61 billion during January – September 2021 as compared with Rs2.49 billion in the same period of the last year.

    The company announced Rs567.20 EPS for the period under review as compared with Rs391.53 in the same period of the last year.

    The company said that sales grew by 28 per cent on the back of strong fundamentals i.e. brand equity, wider reach and effective spending on advertisement and promotion.

    The growth was broad based with both retail business and food solution delivering strong result of easing lockdowns.

    Gross margin increased by 1.23 per cent to 43.69 per cent versus same period last year, through a combination of pricing, better cost absorption and a rigorous savings agenda.

    EPS increased by 45 per cent versus the same period last year driven by growth, margin improvement and tax credits pertaining to capital expenditure.

    About the future outlook of the country, the company said that Pakistan’s economy has shown resilience in the face of global COVID-19 pandemic, witnessing GDP growth of 3.94 per cent in fiscal year 2021 as a result of timely monetary and fiscal measures.

    This was supported by a nation-wide vaccination drive which has, so far, played an important role in successfully fighting COVID. With restriction easing out further, commercial activity expected to return to pre-covid levels.

    “However, rising global commodity prices and energy costs coupled with sharp rupee devaluation is expected to further aggravate the inflationary headwinds which in turn, may have significant implications on the economic activity in the country,” the company said.

    “In such challenging times, the management remains committed to navigate by leveraging the power of our brands and our global and local expertise to drive efficiencies within the value chain. We will continue our efforts on providing value to our consumers to meet their daily needs and on delivering competitive, consistent, responsible, and profitable growth benefitting all stakeholders.”

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  • Careem signs agreement to provide logistic solution to Unilever

    Careem signs agreement to provide logistic solution to Unilever

    KARACHI: Careem – the app based logistic service – has signed an agreement to provide solution to Unilever for its logistic business.

    A statement on Wednesday said that Careem and Unilever Pakistan have entered into a strategic partnership whereby Careem has agreed to provide an app based solution to Unilever for its logistics business.

    The digital solution provided by Careem will improve service levels and cost for Unilever by implementing new business models through innovative technologies.

    Key target areas the solution will focus on include the delivery of left over stock that can be transported through Careem, delivery of stock to remote locations, as well as urgent deliveries.

  • United Brands Limited stops consumer products’ distributions of leading brands

    United Brands Limited stops consumer products’ distributions of leading brands

    KARACHI: A leading distributor of consumer goods has discontinued distribution of leading brands from its business portfolio which may cause monthly loss of Rs58 million.

    According to a notification to Pakistan Stock Exchange (PSX) on Thursday United Brands Limited, which is involved in distribution of consumer products, informed that it had discontinued following businesses from business portfolio, which would result in loss of revenue by approximately Rs58 million or Rs696 million annual loss:

    a. Mars

    b. Wrigley’s

    c. Haleeb Foods

    d. Unilever

    e. Heinz

    f. IFFCO