UPL financial results for Year Ended December 31 2012
At its meeting held today, February 26, 2013 at 10:30 Hrs at Karachi, our Board of Directors has approved the financial statements of the Company for the year 2012.
In a tough operating environment, sales growth slowed to 15% in 2012, the lowest in the last three years, with volume growth contributing to a third. Volume growth in the more mature categories – tea, soaps and detergents, which together represent two-thirds of the business, grew at a low 3%. In pursuit of reshaping the business, the focus is on growing the emerging categories which presently represent a third of our business. In 2012 these grew by 20% in sales with nearly half through volume.
Partly due to one-off reversals of prior year restructuring charges and profit on disposal of fixed assets, but also due to positive change in mix, higher scale and therefore better cost absorption, Profit after Tax in 2012 rose by 34%. Without benefit of one-off adjustments, Profit after Tax growth would have been 23%.
A summary of financial performance for 2012 is given below:
Summary of financial performance
(Rupees in million)
Cost of sales
Other operating expenses
Other operating incomes
Profit from operations
Profit before taxation
Profit after taxation
Earnings per share (Rupees)
The Board of Directors has recommended final cash dividend of Rs.283/- or (566%) per ordinary share of Rs.50/- each; in addition to the first interim dividend of Rs.65/- per ordinary share and second interim dividend of Rs.65/- per ordinary share, already paid during the year.
The total dividend for the year 2012 amounts to Rs.413/- (2011: Rs.307/-) per ordinary share of Rs.50 each. Total profit distributed by way of dividend amounts to 100% (2011: 99.7%). The final dividend will be payable to the Members on the number of ordinary shares held by them at the close of business on 16th April 2013.
Closure of share transfer books
The Share Transfer Books of the Company will be closed from 10th April 2013 to 16th April 2013 (both days inclusive), and will re-open on 17th April 2013. Transfers in good order, received at the Company’s Share Registration Office c/o Famco Associates (Private) Limited, State Life Building No.1-A, I.I. Chundrigar Road, Karachi, by the close of business on 09th April 2013 will be treated in time for the purpose of payment of Final Dividend to the transferees.
Annual General Meeting
The Board has approved the convening of the next Shareholders’ Annual General Meeting for 16th April 2013 at 11.00 a.m. in Karachi.
Business Risk and Future Outlook
Profitable, consistent and competitive growth requires reshaping the business. Addition of new categories and brands will entail a period of sustained investment with consequent impact on profit. Growth of both, new and existing, more mature categories are impacted by inflationary pressure on disposable incomes, economic and political uncertainty, power shortages and law and order conditions.
Faced with these challenges, we continue to focus on our agenda of strengthening our market leadership through continuous innovations, increased consumer focus, deepening the distribution and a strong performance culture within the organization. Our people remain crucial for the continued growth of the business.
The majority shareholder of the Company, Unilever Overseas Holdings Limited (UOHL) made an announcement on 28th Nov 2012 of its intention to acquire all of the ordinary shares held by the other shareholders of the company at a proposed share price of Rs 9,700 per ordinary share, and to seek the delisting of the shares of the company from the stock exchanges in Pakistan, in accordance with the voluntary delisting provisions of the Listing Regulations.
Consequently, the Board of Directors of the Company at their meeting held on 3rd Dec 2012, considered and resolved to accept the proposal made by the majority shareholder. Thereafter the Company submitted the formal application for delisting and the required information to the stock exchanges vide its letter dated 24th Jan 2013 and 13th Feb 2013. The said delisting application is currently under consideration with the Karachi, Lahore and Islamabad stock exchanges.
Unilever Pakistan Limited
Fatimah Jinnah Road
T: +92-21-3 566 0062 (ext 2270)