October 10, 2021 (MLN): Unity Foods has posted a massive increase in net profit during FY21, as it augmented by 15.6x YoY to Rs3.3bn, compared to the profits of Rs214.3mn in FY20, mainly due to growth in volumes and higher selling prices.
This has reflected in earnings per share of the company which went up to Rs3.61/sh from Rs0.39/sh in the preceding fiscal year.
Going by the financial statement of the company, due to higher volumetric growth, the net revenues of the company surged massively by 2.26x YoY to Rs68.8bn. Increased volumes were driven by increased market penetration as well as introduction of new products by Sunridge Foods.
Moreover, higher capacity utilization and improved product positioning strategy were also at play, accompanied by an increase in price of raw material at the source.
On the margins front, the surge in international palm oil prices has helped the company to earn healthy margins of 8% along with increase in demand of consumer packs which is a high margin product.
Among other line items, distribution and selling expenses jumped by 65% YoY while admin Expenses swelled by 80% YoY. The Other operating income settled at Rs177.9mn against the operating expense of Rs387.9mn in FY20.
Meanwhile, owing to higher reliance on borrowing to meet working capital requirements, finance costs of the company increased by 75% YoY to Rs960.9mn.
Overall, the company posted strong results and is expected to maintain this growth momentum amid strong liquidity position, growing customer base and growth in local edible oil market (3% per annum) and increasing reach of company’s branded oil sales, a report by Arif Habib Limited cited.
|
Consolidated Profit and Loss account for the Year Ended June 2021 (Rupees) |
|||
|---|---|---|---|
|
|
Jun-21 |
Jun-20 |
%Change |
|
Net sales |
68,831,301,040 |
30,479,501,918 |
126% |
|
Cost of sales |
(63,180,175,227) |
(28,379,061,793) |
123% |
|
Gross profit |
5,651,125,813 |
2,100,440,125 |
169% |
|
Distribution and selling expenses |
(1,236,246,093) |
(751,014,096) |
65% |
|
Administrative expenses |
(410,663,355) |
(227,668,412) |
80% |
|
Other operating expenses/ Income |
177,925,351 |
(387,940,582) |
-146% |
|
Other income |
334,708,789 |
13,477,049 |
2384% |
|
Finance costs |
(960,978,338) |
(548,145,934) |
75% |
|
Profit/(loss) before taxation |
3,555,872,167 |
199,148,150 |
1686% |
|
Taxation |
(217,679,236) |
15,132,017 |
|
|
Profit/(loss) after taxation |
3,338,192,931 |
214,280,167 |
1458% |
|
Earnings per share – basic and diluted |
3.61 |
0.39 |
826% |
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