Unity Foods’ profits grow over 6-fold to Rs 634 million during 1QFY21

October 27, 2020 (MLN): Unity Food Limited (UNITY) has announced its financial results for the three months ended on September 30, 2020, wherein the bottom-line of the company grew by more than 6 times YoY, to Rs 634 million, translating into an EPS of Rs 0.98 when compared with the same period last year in which net profits were recorded at Rs 92 million (EPS: Rs 0.15).

As per the financial statement issued by the company, Unity Foods witnessed a two-fold increase in its top-line earnings to Rs 12.58 billion on the back of a strong marketing campaign, new store additions as well as capacity enhancements along with a new flour business.

However, the gross margins of the company shrank from 10% to 9% owing to 2.78 times YoY increase in the cost of sales during 1QFY21.

The company saw an increase in its major expense heads as distribution & selling expenses rose by 14% YoY to 209 million. Moreover. the administrative cost went up by 57% YoY during the said period.

On the other hand, the other major highlight is the other income that rose by 60% YoY to Rs 17 million. The finance cost soared by 43% YoY, from Rs 107 million to Rs 153 million due to a working capital requirement.

Meanwhile,  the company paid a whopping tax amounting to Rs 51 million during 1QFY21 against Rs 10 million paid in the corresponding period last year.

Consolidated Profit and Loss account for the first quarter ended September 30, 2020 (Rupees)

 

Sep-20

Sep-19

%Change

Net sales

 12,580,304,091

 4,555,242,575

176%

Cost of sales

 (11,482,541,991)

 (4,116,794,785)

179%

Gross profit

 1,097,762,100

 438,447,790

150%

Distribution and selling expenses

 (209,073,921)

 (184,103,057)

14%

Administrative expenses

 (74,935,770)

 (47,599,817)

57%

Other operating expenses

 (8,810,115)

 (7,295,313)

21%

Total operating cost

 (275,199,576)

 (238,998,187)

15%

Other income

 17,404,732

 10,867,993

60%

Finance costs

 (153,717,840)

 (107,566,714)

43%

Profit before taxation

 686,249,416

 102,750,882

568%

Taxation

 

 

 

Current

 (24,303,400)

 –

Deferred

 (27,232,414)

 (10,063,100)

171%

 

 (51,535,814)

 (10,063,100)

412%

Profit after taxation

 634,713,602

 92,687,782

585%

Earnings per share – basic and diluted

 0.98

 0.15

553%

 

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Posted on: 2020-10-27T13:38:00+05:00

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