October 24, 2022 (MLN): Unilever Pakistan Foods Limited (PSX: UPFL) has shown significant progress during 9MCY22 as its net profits stood at Rs4.81 billion, registering an increase of 33.25% YoY [EPS: Rs755.80] on account of broad-based growth with both retail business and food solutions, the company filing on PSX showed today.
Pursuant to the financial statement provided to PSX, the company’s sales grew by 26.27% YoY on the back of strong fundamentals i.e. brand equity, wider reach, and effective spending on advertisement and promotion.
However, the cost of sales posted a proportionately higher increase which resulted in a 2% YoY decline in gross margins to 41.4% in 9MCY22.
In addition to it, the finance cost has also jumped by 63% YoY to Rs54mn due to higher borrowing costs. Moreover, the company’s effective tax rate increased from 3.33% to 5.48% in the said period.
Pakistan's economic and operating environment remains challenging as the country continues to grapple with sustained double-digit inflation, low forex reserves, and the aftermath of recent floods.
The above factors are expected to result in a considerable overall economic slowdown and further erosion of purchasing power of the consumers, the company said in a statement issued to PSX.
In the midst of this situation, the management remains committed to navigating the challenges and staying relevant to the consumer by leveraging the power of its brands, delivering delightful innovations, and driving cost transformation.
“We are confident that we will continue to deliver competitive, consistent, responsible, and profitable growth benefitting all stakeholders,” the notification further read.
