Unilever Foods profit climbs 26% in Q1, EPS hits Rs331

April 28, 2026 (MLN): Unilever Pakistan Foods Limited (PSX: UPFL) reported a robust 26.05% year-on-year expansion in profit after income tax for the three months ended March 31, 2026, recording Rs2.11bn compared to Rs1.67bn in the corresponding period last year.

The company's basic and diluted earnings per share (EPS) climbed 26.05% to Rs331.01, up from Rs262.60 in Q1FY25, reflecting meaningful value accretion for shareholders during the period.

UPFL's sales posted a 25.97% year-on-year increase, rising to Rs13.19bn from Rs10.47bn, driven by robust demand across key product categories.

The company delivered sales growth of 26.0% on the back of strong volumetric gains, underscoring the quality of the revenue expansion during the quarter.

Concurrently, the cost of sales grew at a considerably more contained pace of 19.18%, reaching Rs7.72bn from Rs6.47bn, meaningfully lagging the revenue growth rate and signaling strong operational leverage and favorable cost dynamics within the manufacturing base.

This disciplined cost management at the gross level allowed gross profit to register a standout 36.94% expansion, settling at Rs5.48bn, up from Rs4.00bn in the prior year period.

The gross margin improved materially to 41.5% compared to 38.2% in the same period last year, representing a significant structural improvement in profitability at the product level.

On the operational front, the company navigated an elevated overhead environment.

Distribution, administration, and other expenses rose by 38.56% to Rs2.15bn from Rs1.55bn, growing ahead of the revenue rate and partially absorbing the gross profit gains, showing both business scale expansion and incremental investment in commercial and administrative capabilities.

Other income, at Rs159.40m, contracted sharply by 50.28% from Rs320.59m in Q1FY25, emerging as a notable drag below the gross profit line and partially offsetting the strong operational performance during the quarter.

The combined effect of these dynamics resulted in profit before operations expanding by a healthy 25.95% to Rs3.49bn, compared to Rs2.77bn in the corresponding period of the prior year, demonstrating the resilience of UPFL's core operating model.

Below the operating line, finance costs declined marginally by 3.13% to Rs31.39m from Rs32.41m in the prior year, reflecting a lighter debt-servicing burden that provided a modest but positive tailwind to earnings.

Notably, a final tax charge of Rs2.47m applicable in Q1FY25 was entirely absent in the current period, providing a marginal incremental benefit to the pre-income-tax earnings base.

Following these contributions, profit before income tax stood at Rs3.46bn, a 26.40% year-on-year increase from Rs2.74bn recorded in Q1FY25.

The company faced a commensurately higher income tax charge of Rs1.35bn, a 26.97% increase from Rs1.06bn in the prior year.

After accounting for taxation, Unilever Pakistan Foods Limited successfully closed the quarter with a profit after income tax of Rs2.11bn, representing a 26.05% expansion over the Rs1.67bn reported in the corresponding period of last year.

In recognition of the strong quarterly performance, the Board of Directors has recommended a first interim cash dividend of Rs331 per ordinary share of Rs10 each, equivalent to 3,310%, payable to members on the register at the close of business on May 8, 2026.

This compares to Rs525 per ordinary share declared for the corresponding period of the prior year.

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