Unilever announces final dividend

Unilever Pakistan Limited (UPL) has announced a final dividend of Rs 57 per ordinary share of Rs 50 for the year ended December 31, 2007. Together with the interim dividend of Rs 65 already paid the total distribution for the year 2006 amounts to Rs 122 per share.
This was recommended by the board of directors of the company in its meeting held on Friday. Peter Harvay, Chief Financial Officer, Unilever while speaking at a press conference here said that in the year 2006, turnover grew an impressive 18.8 percent against 11 percent in 2005. Sharper focus and increased resource allocation in marketing and customer management have been the drivers behind this growth.
He said that the company's net sales stood at Rs 20,988 million in the year 2006 as compared to Rs 17,671 million in 2005. The profit after tax was Rs 1,644 against Rs 1,602 during the previous year and the earning per shares stood at Rs 124 in 2006 against Rs 120 in 2005.
Peter said that the home and personal care business along with frozen dessert and ice cream business delivered significant sales and profit increases. Beverage profitability however was severely impacted by the cost of tea leaf arising from the drought in Kenya and the company was unable to pass the full impact on to the consumer. This restricted the overall profit growth to 2.6 percent for the full year.
The home and personal care business delivered an impressive sales growth of 29 percent, from a combination of market growth and increased market share. Volume growth coupled with aggressive reduction in supply chain costs lifted operating profit by 54 percent.
Beverages business achieved sales growth of 3 percent. During the year the tea industry was severely impacted by the drought in Kenya with Kenyan tea leaf prices going as high as 50 percent versus last year, adversely impacting the business. The beverage out-of-home business continues to grow through expansion of institutional accounts and increased distribution coverage to teashops.
He told that Wall Frozen Dessert and ice cream growth was an astounding 40 percent, achieving through innovations, aggressive market penetration and constant attention to consumer affordability. Increased market activation and penetration resulted in 49 percent sales growth for Blue Band margarine.