Unity Foods Limited (PSX: UNITY) has reported a net profit of Rs1.09 billion for the nine months ended March 31, 2025, marking a sharp turnaround from a net loss of Rs1.21 billion in the same period last year. The earnings per share (EPS) for the nine-month period rose to Rs0.92, compared to a loss per share of Rs1.01 a year ago.
In a positive development for shareholders, the company’s Board of Directors also announced a final cash dividend of Rs7.50 per share (75%) for the year ended June 30, 2024. Since the announcement, the company’s stock price has not seen much difference, oscillating around the its price from its previous close.
Despite facing a 10.41% year-on-year decline in net turnover to Rs61.97 billion—primarily due to a slowdown in gross turnover—Unity Foods successfully boosted its gross profit by 10.53%, reaching Rs7.41 billion. This was made possible by a 12.64% reduction in the cost of sales, reflecting the company’s improved cost management and operational efficiencies.
Operating profit grew significantly by 36% to Rs6.80 billion, supported primarily by a 202% surge in other income, which increased to Rs2.13 billion from Rs703 million last year. Meanwhile, selling and distribution expenses dropped by 31% to Rs1.4 billion, providing additional support to the bottom line.
Finance costs remained broadly stable at Rs5.37 billion versus Rs5.4 billion last year, helping the company maintain financial discipline. After accounting for finance costs and levies, Unity Foods posted a net profit of Rs772.6 million from continuing operations, while discontinued operations contributed another Rs326.2 million to the overall profit.
The company’s performance reflects the impact of strategic initiatives aimed at strengthening operational performance, enhancing efficiency, and optimising cost structures, enabling a return to profitability even in a challenging business environment.
Unity Foods Limited is a diversified food producer operating primarily in edible oils, specialty fats, animal feed, and consumer food products. Originally incorporated as Avari Holdings, the company repositioned itself in the food sector and has expanded its product range to cater to both industrial and retail markets. It also has interests in specialty grains, dairy products, and value-added food categories.
Over the past few years, Unity Foods has actively pursued backward integration, established new processing facilities, and broadened its product portfolio to capture a growing share of Pakistan’s food sector, particularly amid rising demand for locally manufactured food staples.
Recent Financial Performance
| Financial Indicator | 9MFY25 | 9MFY24 | % Change |
|---|---|---|---|
| Gross Turnover | Rs67.39 bn | Rs75.55 bn | -10.79% |
| Net Turnover | Rs61.97 bn | Rs69.16 bn | -10.41% |
| Gross Profit | Rs7.41 bn | Rs6.71 bn | 10.53% |
| Operating Profit | Rs6.80 bn | Rs4.99 bn | 36.21% |
| Finance Cost | Rs5.37 bn | Rs5.40 bn | -0.54% |
| Net Profit (9M Total) | Rs1.09 bn | (Rs1.21 bn) | — |
| EPS | Rs0.92 | (Rs1.01) | — |
The company’s results highlight a major financial recovery driven by disciplined cost control, higher other income, and a reduction in non-core expenditures, even as top-line growth faced pressures.
