Turnover also rose which was fuelled by strong volume gains in ice cream, home and personal care segments, the company said in a statement sent to the Karachi Stock Exchange on Tuesday.
The company’s board of directors also recommended a final cash dividend of Rs157, taking the full-year payout to Rs246 per ordinary share of Rs50.
Net sales of the company rose 17 per cent to Rs44.7 billion in 2010 compared with Rs38.2 billion posted in 2009.
Growth of tea business, which represents 30 per cent of total sales, was affected by smuggling as only half of the 180,000 tons of tea consumed in the country is officially imported, the company said. The other half is smuggled into the country through Iran and Afghanistan.
Two of the biggest tea brands in the country - Lipton and Brooke Bond - are manufactured by Unilever. The company proposed a reduction in tax rates to encourage tea trade through legal channels.
Ice cream sales grew 33 per cent on the back of innovation in the sector. Rising input cost, which was not entirely passed to the consumers, coupled with investment in brands impacted gross margins as they rose 229 basis points.
Published in The Express Tribune, February 16th, 2011.
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