After expansion bid, Bunnys braces for flood impact

Bunny’s Limited, one of Pakistan’s leading packaged bread and bakery producers, has reported a sharp reversal in its bottom line. For the financial year ending 2024, the company posted a loss per share of PKR 1.6, compared to earnings per share of PKR 2 in the previous year. The decline reflects not only rising input costs but also heavier spending on distribution and administration.

The figures underline the pressures that have accompanied expansion. For the third quarter of FY25, however, there was some respite. The company earned PKR 0.6 per share, a turnaround from a loss of PKR 1.9 in the same period a year earlier. Net sales in FY24 rose 23% year on year to PKR 7 billion, but the cost of sales surged 29%, eroding margins.

Despite these financial headwinds, Bunny’s has pressed ahead with new investments aimed at lowering long-term operating costs. The company has installed a 200 KVA solar power system, with an additional 200 KVA expected to come online soon, covering part of its 1 MW total energy requirement. Alongside this, it has begun using biogas fuel, estimated to be about 30% cheaper than conventional alternatives due to the plant’s proximity to its factory. Management intends to increase reliance on biogas as capacity expands, creating a buffer against future energy price shocks.