August 25, 2021 (MLN): Unilever Pakistan Foods Limited (PSX: UPFL) has posted a 40% YoY jump in net profits to Rs2.4bn for 1HCY21, compared to the profits of Rs1.7bn in the corresponding period last year.
This has translated into earnings per share which increased by 40% to Rs380.11 against Rs127.01 reported in the same period last year driven by growth, margin improvement and tax credits pertaining to capital expenditure.
In view of the financial results for 1HCY21, the Directors have recommended a cash dividend of Rs151 i.e. (1510%) per ordinary share of Rs 10 each. In the same period last year, a cash dividend of Rs141 had been recommended by the Board.
During the period under review, the company’s sales grew by 24.9% YoY 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 Solutions delivering strong results as a result of easing lockdowns.
The gross margin of the company increased to 43.76% versus 42.42% in the same period last year, through a combination of pricing, better cost absorption and a rigorous savings agenda.
The Finance cost dropped by 7.3% YoY from Rs15.3mn to Rs14.2mn due to lower borrowing cost. Moreover, company booked affective tax rate of 4% for 1HCY21, compared to 10% realized in 1H of CY20.
“Despite a tough economic and operating environment, the management of the company remained committed to navigate the situation by leveraging its access to unilever’s global expertise, honing the understanding of its consumers, on-going innovation endeavours and by consistently offering an exemplary customer service,” company’s financial statement said.
The launch of Hellman’s mayonnaise is yet another manifestation of company’s focus towards innovation and consumers, it added.
|
Financial Results for the half year ended June 30, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-21 |
Jun-20 |
% Change |
|
Sales |
9,582,510 |
7,670,039 |
24.93% |
|
Cost of Sales |
(5,389,524) |
(4,416,308) |
22.04% |
|
Gross profit |
4,192,986 |
3,253,731 |
28.87% |
|
Distribution, admin & other operating expenses |
(1,773,745) |
(1,419,033) |
25.00% |
|
Other incomes |
111,330 |
89,483 |
24.41% |
|
Profit from Operations |
2,530,571 |
1,924,181 |
31.51% |
|
Finance cost |
(14,222) |
(15,348) |
-7.34% |
|
Profit before taxation |
2,516,349 |
1,908,833 |
31.83% |
|
Taxation |
(95,059) |
(182,516) |
-47.92% |
|
Profit after tax |
2,421,290 |
1,726,317 |
40.26% |
|
EPS – basic and diluted (Rupees) |
380.11 |
271.01 |
40.26% |
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