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Progress in sales lifts UNITY’s profitability

February 26, 2020 (MLN): The initial six months of the current fiscal year remained profitable for Unity Foods Limited (UNITY) as its net profits after tax has surged significantly from Rs 146.5 million in Jul-Dec 2018 to Rs 374.9 million, exhibiting a growth of 156% YoY.

The growth in the company’s profitability witnessed on account of improvement in sales by 68% YoY from Rs 6.7 billion to Rs 11.3 billion in the backdrop of stabilizing macroeconomic environment of the country. The stability of Rupee against Dollars played a direct role on earnings of the company as the company also derive some of its revenues from exports.

Moreover, the prudent decision by the company to participate in exports of corn during the period of a sharp decline in sales of edible oil also helped the company in maintaining its topline sales level.

On the expense side, the company’s distribution and selling costs rose by 231%, administration expenses mounted by 26%, whereas, its non-core expenses dropped by 63%.

Due to excessive short-term borrowings, the company’s financial charges soared significantly by 176% to Rs 244.2 million from Rs 88.6 million.

Despite the company witnessed an increase in net profits, the earnings per share of the company exhibited a decline of 14% from Rs 0.8 per share to Rs 0.69 per share.

Consolidated Profit and Loss statement for the half-year ended December 31, 2019 (Rupees)

 

Dec-19

Dec-18

% Change

Net sales

 11,310,210,933

 6,713,616,361

68%

Cost of sales

 (10,210,017,303)

 (6,222,821,662)

64%

Gross profit

 1,100,193,630

 490,794,699

124%

Distribution and selling expenses

 (354,614,377)

 (107,005,855)

231%

Administrative expenses

 (106,638,481)

 (84,566,512)

26%

Other operating expenses

 (27,989,141)

 (76,336,145)

-63%

Other income

 27,469,934

 5,807,083

373%

Finance costs

 (244,208,311)

 (88,605,659)

176%

Profit/(loss) before taxation

 394,213,254

 140,087,611

181%

Taxation

 (19,306,242)

 6,424,889

 

Profit/(loss) after taxation

 374,907,012

 146,512,500

156%

Earnings per share – basic and diluted

 0.69

 0.80

-14%

 

Copyright Mettis Link News

Posted on: 2020-02-26T15:33:00+05:00

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