Karachi, March 26, 2024 – Unilever Pakistan Foods Limited, in its latest report released on Tuesday, has underscored the daunting economic and operational hurdles expected in the near term.
The report sheds light on persistent challenges stemming from high inflation rates and structural issues such as the twin account deficit (comprising current and fiscal deficits), which may continue to impede economic growth and operational efficiency.
Despite these challenges, Unilever Pakistan remains resolute in its commitment to delivering robust results by capitalizing on its strong brand portfolio, diversified product offerings, profound consumer insights, and resilient value chain.
Additionally, the company reaffirmed its dedication to advancing its sustainability goals, including reducing its carbon footprint and fostering positive social impact. Initiatives such as plastic reduction, adoption of renewable energy sources, and promotion of diversity and inclusion are integral components of Unilever Pakistan’s sustainability endeavors.
Reflecting on the economic landscape of Pakistan in 2023, the report acknowledges the formidable challenges posed by social, economic, and political crises. Double-digit inflation rates persisted due to escalating energy and commodity costs, significant currency devaluation, and elevated policy rates. However, despite these adversities, Unilever Pakistan sustained its growth trajectory, attributed to the commitment of its seasoned management team, adherence to core business principles, robust supply chain network, and enduring consumer appeal of its brands.
The company reported a broad-based growth of 22.2%, primarily driven by price, while continuing to invest in brand-building and innovation. Earnings per Share (EPS) witnessed a growth of 22.5%, buoyed by revenue growth and higher interest income.
The Board of Directors played a pivotal role in navigating Unilever Pakistan through these challenging times, fulfilling its statutory responsibilities and ensuring the welfare of all stakeholders. Evaluation of the Board, its committees, and individual directors was conducted by the Pakistan Institute of Corporate Governance (PICG) in accordance with the Code of Corporate Governance and the Companies Act, 2017, ensuring transparency and accountability.
Sub-committees such as the Audit Committee and the Human Resources and Remuneration Committee played a vital role in identifying areas for improvement and recommending pragmatic solutions to optimize performance. Unilever Pakistan remains committed to adopting and implementing best governance practices for sustained growth and the benefit of all stakeholders. As Unilever Pakistan prepares to navigate through the complex economic landscape ahead, it stands firm in its commitment to delivering value to consumers, fostering sustainability, and upholding the highest standards of corporate governance.
