UPFL profit soars 40% to Rs4bn in 1HCY26

August 27, 2026 (MLN): Unilever Pakistan Foods Limited (PSX: UPFL) recorded a 40% increase in its net profit for the half year ended June 30, 2026, with profit after tax climbing to Rs4.34bn from Rs3.09bn in the corresponding period last year.

Showing this strong bottom-line growth, the company's basic and diluted earnings per share (EPS) expanded to Rs680.90 from Rs484.86 in 1HFY25.

The Directors have recommended a second interim cash dividend of Rs350.00 per ordinary share (3,500%) for the six months ended June 30, 2026, payable to members on the number of ordinary shares held at the close of business on September 7, 2026.

The top-line performance was impressive, with sales rising 29% year-on-year to Rs25.26bn from Rs19.59bn, driven by volume expansion across all key product segments, particularly Knorr Noodles, Rafhan, and Unilever Food Solutions.

Cost of sales rose at a slower pace of 20% to Rs14.43bn, allowing gross profit to surge 44% to Rs10.83bn from Rs7.53bn.

Gross margin improved to 42.9%; an expansion of 442 basis points compared to the same period last year showing the company's disciplined cost management and favourable product mix.

On the expenditure side, distribution, admin and other expenses rose 50% to Rs4.35bn, while other income declined 41% to Rs365.10m. Despite the higher operating costs, operating profit grew 30% to Rs6.84bn from Rs5.24bn.

Below the operating line, finance cost declined 33% to Rs43.65m from Rs65.03m, providing a small positive contribution. Final taxes declined 92% to just Rs7.10m from Rs84.92m.

These combined movements pushed profit before taxation up 33% to Rs6.79bn from Rs5.09bn.

Taxation rose 22% to Rs2.45bn from Rs2.00bn a proportionally smaller increase than pre-tax profit growth providing an amplifying effect that delivered the 40% increase in profit after tax for the half year.

Pakistan's economic environment remained on a path of gradual stabilisation during the period, supported by continued fiscal consolidation, strengthening foreign exchange reserves, and a more disciplined macroeconomic policy framework.

However, elevated living costs, inflationary pressures, higher commodity prices, and geopolitical uncertainties continued to weigh on consumer demand and create challenges for the broader business environment.

Amid these ongoing challenges, the company remains well positioned to navigate the evolving landscape through its strong brand equity, consumer-relevant innovations, disciplined cost management, and value-led propositions, supporting sustainable growth and long-term value creation for shareholders.

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