Unilever Foods net profit surges 77% as sales increase

Unilever Pakistan Foods’ net profit increased by 77 per cent on the back of a 13 per cent growth in sales in the first half of 2010.

Net profit of the company increased to Rs220 million during January to June from last year’s Rs124 million, according to a notice sent to the Karachi Stock Exchange on Wednesday.

Knorr Noodles remained the star performer while Knorr Cubes and Rafhan Desserts recorded high growth, the company secretary Amar Naseer said in the notice.

Net sales rose to Rs2.04 billion in the first six months of the year compared with Rs1.81 billion posted in the same period last year.

The next challenge is the inflationary pressure caused by the devastating floods which has disrupted the lives of almost 20 million people, Naseer said.

The board of directors recommended an interim dividend of 350 per cent or Rs35 per ordinary share of Rs10.

The company kept a lid on its operating expense as it only rose 4.25 per cent to Rs491 million compared with last year’s Rs472 million.

The company is committed to building its brands which have delivered exceptionally in today’s challenging environment, Naseer added.

Rafhan Best Foods Limited was renamed as Unilever Pakistan Foods Limited in 2007. Brands of the company include Knorr, Energile and Rafhan.

Unilever, the parent company, announced a decrease of 3.3 per cent in net profit to Rs1.19 billion earlier this week. The company cited falling tea sales with a rise in its smuggling as the key reason for the drop in profit.

Published in The Express Tribune, August 26^th, 2010.