Unity Foods returns to profitability in 9MFY25

April 28, 2025 (MLN): Unity Foods Limited (PSX: UNITY) has reported a net profit of Rs1.09 billion for the nine months ended March 31, 2025, compared to a loss of Rs1.21bn in the same period last year, marking a significant turnaround in the company's financial performance.

The earnings per share (EPS) for the period clocked in at Rs0.92 against a loss per share of Rs1.01 last year.

The Board of Directors also announced a final cash dividend of Rs7.50 per share (75%) for the year ended June 30, 2024.

During the nine-month period, the company's net turnover fell by 10.41% to Rs61.97bn from Rs69.16bn recorded a year ago.

The decline in revenue was primarily due to lower gross turnover, which decreased by nearly 11% year-on-year to Rs67.39 billion.

Despite the drop in turnover, Unity Foods recorded a 10.53% growth in gross profit, reaching Rs7.41bn as cost-saving measures led to a 12.64% reduction in the cost of sales.

Operating profit surged by 36% to Rs6.80 billion, supported by a 202.54% jump in other income, which rose to Rs2.13bn from Rs703 million last year.

Selling and distribution expenses fell by 31% to Rs1.4bn, contributing further to the operational strength.

Finance costs remained largely stable at Rs5.37bn compared to Rs5.4bn last year.

After accounting for finance costs and levies, Unity Foods posted a net profit of Rs772.6m from continuing operations, while discontinued operations added another Rs326.2m to the bottom line.

Overall, the company achieved a significant turnaround, reflecting effective cost management, enhanced operational efficiencies, and focused strategic decisions.

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