Directors' ReviewDear Shareholders,
The company continued its growth journey in the first quarter, achieving 19% increase in salesand 17% growth in after-tax profits over the corresponding quarter. Margins, however, remainedunder pressure due to significant increase in raw material prices triggered by global input costinflation.The Home and Personal Care business was the major contributor to overall sales growth. Excitingstream of innovations, 360 degree communication campaigns and focused market activationswere the key drivers.
Home & Personal Care
Sales growth of 37% over corresponding quarter was driven by robust performance of our starbrands: Surf Excel, Lux, Fair & Lovely and Lifebuoy. Surf Excel recorded significant volumegrowth as a result of continued market demand. New variants and media campaign led to thegrowth of Fair and Lovely. Lifebuoy continues to develop through introduction of new variants.
Beverages delivered 4% sales growth, primarily due to sustained performance of Lipton. Thepremium brand registered double digit growth of 12.2% during the quarter with clear focus onTea Bags.
Ice Cream sales for the current quarter grew by 6%. The growth was achieved through increasedmarket penetration, brand innovations, specifically in Cornetto and Paddle Pop, supported withrelevant activation and strong consumer promotions in Take Home range.
Blue Band margarine grew impressively by 29% through improved distribution network andeffective activation.
Earnings per Share
Earnings per share of Rs 39.04 is up by 16.6% compared to Rs 33.49 in 2007.On behalf of the BoardKarachiEhsan A. Malik April 24, 2008Chairman & Chief Executive
UNILEVER PAKISTAN LIMITED