Unilever Pakistan declares Rs466 dividend, 9MFY25 profit declines 16%

October 23, 2025 (MLN): Unilever Pakistan Foods Limited (PSX: UPFL) reported a profit after tax of Rs4.57bn for the nine months ended September 30, 2025, down 15.8% from Rs5.43bn in the corresponding period last year.

Earnings per share declined to Rs717.93 compared to Rs852.77 in 9MFY24, primarily due to the maturity of tax credits and a significant decrease in other income.

The company also declared a cash dividend of Rs466 per share.

Sales increased 21.3% year-on-year to Rs30.08bn from Rs24.81bn, demonstrating robust top-line growth during the period, driven by strong volumetric performance across all product segments, with Knorr Noodles leading the growth.

Cost of sales rose 21.9% to Rs18.41bn from Rs15.1bn.

Gross profit grew 20.3% to Rs11.68bn against Rs9.71bn in 9MFY24, with the gross margin declining marginally to 38.8% from 39.1% in the prior year period, reflecting a contraction of 32 basis points primarily due to incremental depreciation resulting from capital expenditure.

Distribution, admin and other expenses increased 15.7% to Rs4.84bn from Rs4.19bn last year. Other income dropped significantly by 65.5% to Rs786.7m from Rs2.28bn in 9MFY24.

The company recorded an operating profit of Rs7.62bn, down 2.3% from Rs7.80bn in 9MFY24.

Finance costs surged 3.6 times to Rs79.5m from Rs22.2m in the previous year.

Taxation (final taxes) declined 20.1% to Rs84.9m from Rs106.3m last year.

Profit before income tax decreased 2.8% to Rs7.46bn from Rs7.67bn in 9MFY24.

Taxation (income tax) declined 26.7% to Rs2.80bn from Rs3.84bn in the prior period.

The company concluded 9MFY25 with a net profit of Rs4.57bn, delivering a net profit margin of 15.2% compared to 21.9% in 9MFY24.

The profit decline was primarily driven by a sharp drop in other income and higher finance costs, despite strong sales growth and improved gross profit performance.

Despite challenges from Pakistan's macroeconomic landscape including rebounding inflation due to flood-related supply disruptions and rising food prices the company maintained operational resilience.

In response to recent floods, the company is proactively ensuring uninterrupted product availability in affected regions by working closely with partners to maintain consistent supply.

 The company remains focused on operational excellence, disciplined cost control, and strategic initiatives to sustain its market position and long-term value creation.

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