KARACHI: Unilever Pakistan Foods Limited (UPFL) posted a mixed set of financial results for the nine months ended September 30, 2025, showcasing a sales growth but a significant contraction in bottom-line profitability.
The company reported a 21.3% year-on-year increase in net sales, which climbed to Rs. 30.08 billion from Rs. 24.81 billion in the same period last year. This growth was primarily driven by strong volumetric performance across all product segments, with the strategic re-launch of Knorr Noodles highlighted as a key growth driver.
Despite the top-line surge, the company witnessed a 15.8% decline in profit after taxation, which fell to Rs. 4.57 billion from Rs. 5.43 billion. Earnings per share (EPS) followed suit, dropping to Rs. 717.93 from Rs. 852.77. According to the directors’ review, the decline is “mainly on account of maturity of tax credits and decrease in other income.” The company’s gross margin saw a marginal decline of 32 basis points to 38.8%, attributed to incremental depreciation from capital expenditures.
The financial statements reveal a significant reduction in other income, which plummeted to Rs. 786.66 million from Rs. 2.28 billion last year, creating a substantial headwind against sales growth. Furthermore, the effective tax rate increased, contributing to the profit squeeze. In a post-reporting date event, the board declared an interim cash dividend of Rs. 466 per share, lower than the Rs. 511 per share declared in the corresponding period last year, reflecting the decreased profitability. The company acknowledged facing a challenging macroeconomic environment with rebounding inflation but reaffirmed its focus on operational excellence and cost control to sustain its market position.
