March 04, 2024 (MLN): Unilever Pakistan Foods Limited (PSX: UPFL) has recorded a profit of Rs9.74 billion [EPS: Rs1,529.68] for the year ending December 31, 2023, marking a 22.53% YoY increase from the profit of Rs7.95bn [EPS: Rs1,248.41] recorded in 2022.
The Earnings per share (EPS) of the company increased by 22.5% versus the same period last year driven by growth and higher interest income.
Considering the improved financial performance, the company's directors have recommended the final cash dividend of Rs178 per ordinary share of Rs10 each.
This is in addition to an interim dividend of Rs251 already paid during the year.
Going by the results, the company's top line soared by 22.17% YoY to Rs34.59bn as compared to Rs28.31bn in SPLY.
Likewise, the cost of sales rose by 20.9% YoY to stand at Rs19.78bn in 2023. With the growth in sales outpacing the increase in the cost of sales, the gross profit improved by 23.9% YoY to Rs14.81bn in 1HFY24.
Accordingly, the gross margins improved to 42.82% as compared to 42.21% in SPLY.
On the expense side, the Distribution, Admin & Other expenses clocked in at Rs6.77bn in 2023, 40.45% YoY higher than the costs incurred in 2022.
UPFL's earnings were further supported by other income, which soared by 76.6% YoY to stand at Rs2.44bn in 1HFY24 as compared to Rs1.38bn in SPLY.
The company’s finance cost decreased by 14.6% YoY and stood at Rs119.46m as compared to Rs139.91m in SPLY, despite higher interest rates.
On the tax front, the company paid a higher tax worth Rs609.07m against the Rs413.96m paid in the corresponding period of last year, depicting a rise of 47.1% YoY.
Future Outlook From Company's Perspective
Pakistan’s economic and operating environment is expected to remain challenging due to sustained high levels of inflation and pressure on FX reserves due to upcoming foreign debt servicing. This may continue to affect the purchasing power of consumers.
Despite the above, UPFL's management team remains committed to overcoming the challenges by driving value for our stakeholders and staying connected to consumers by harnessing the strength of our brand, introducing delightful innovations, continuously striving for value-for-money offerings, and driving cost efficiencies throughout the value chain.
| Unconsolidated (un-audited) Financial Results for the year ended December 31, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec 23 | Dec 22 | % Change | |
| Sales – Net | 34,586,732 | 28,309,317 | 22.17% |
| Cost of sales | (19,777,895) | (16,359,841) | 20.89% |
| Gross Profit / (Loss) | 14,808,837 | 11,949,476 | 23.93% |
| Distribution, Admin & Other | (6,774,239) | (4,823,358) | 40.45% |
| Other Income | 2,437,963 | 1,380,154 | 76.64% |
| Finance Cost | (119,461) | (139,905) | -14.61% |
| Profit before taxation | 10,353,100 | 8,366,367 | 23.75% |
| Taxation | (609,070) | (413,964) | 47.13% |
| Net profit / (loss) for the period | 9,744,030 | 7,952,403 | 22.53% |
| Basic earnings/ (loss) per share | 1,530 | 1,248 | – |
Amount in thousand except for EPS
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Posted on: 2024-03-04T15:42:42+05:00
