Unity Foods ends FY23 with 69% YoY lower profit

October 03, 2023 (MLN):  Unity Foods Limited (PSX: UNITY) witnessed a substantial 69.05% YoY decline in its profitability, with its after-tax profit for FY23 standing at Rs675.09 million, as compared to a noteworthy profit of Rs2.18 billion [EPS: Rs1.83] during last year.

The decrease in profitability was owed to a substantial exchange loss booked by the company mainly due to the depreciation of the Pakistani Rupee (PKR), worth Rs7.49bn, which was 2.58x YoY higher than the previous year.

Going by the results, the company's top line rose by 15% YoY to Rs100.87bn as compared to Rs87.71bn in FY22.

The cost of sales also increased by 9.54% YoY but was lesser than proportionate to sales rise, which improved the gross profit by 67.66% YoY to Rs13.81bn in FY23.

During the period under review, other income shrank by 22.24% YoY to stand at Rs673.27m in FY23 as compared to Rs865.88m in SPLY.

On the expense side, the company observed an increase in Selling and Distribution expenses by 46.86% YoY while other expenses fell by 84.74% YoY to clock in at Rs1.85bn and Rs33.15m respectively during the review period.

The company’s finance costs skyrocketed by 97.9% YoY and stood at Rs3.56bn as compared to Rs1.8bn in FY22, mainly due to higher interest rates.

On the tax front, the company paid a significantly higher tax worth Rs360.22m against the Rs32.2m paid in the corresponding period of last year, depicting an increase of more than 10 times when compared to the tax paid last year.

Amount in thousand except for EPS

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