October 28, 2021 (MLN): Unity Foods Limited (UNITY) announced its financial result for 1QFY22 whereby the company declared a loss after tax of Rs34mn (LPS: Rs0.03) compared to a profit of Rs635mn (EPS: Rs0.98) in 1QFY21.
The loss was mainly attributable to a whopping increase in operating cost amid exchange losses, higher finance costs and a significant increase in taxes.
Going by the financial statement, the revenue of the company increased by 45% YoY to stand at Rs18.2bn. The jump in sales is due to a surge in edible oil prices on the back of higher international palm oil prices along with an increase in demand for consumer packs which is a high margin product, Arif Habib research said.
However, the gross margins shrank by 0.94ppt to 7.79% in 1QFY22 due to higher discounts offered for product penetration and higher freight cost.
Notably, the other expense of the company clocked in at Rs688mn in 1QFY22 on the back of realized exchange loss of PKR 293mn and unrealized exchange loss of PKR 391mn, taking total operating cost to Rs1.18bn, it added.
Further damage was done by the finance cost which soared by 2.6 times YoY amid higher reliance on borrowings to meet working capital and capital expenditure requirements. Meanwhile, the company paid taxes worth Rs74.77mn, up by 45% YoY in the said period.
|
Consolidated Profit and Loss account for the first quarter ended September 30, 2021 (Rupees) |
|||
|---|---|---|---|
|
|
Sep-21 |
Sep-20 |
%Change |
|
Net sales |
18,241,318,941 |
12,580,304,091 |
45% |
|
Cost of sales |
(16,820,236,136) |
(11,482,541,991) |
46% |
|
Gross profit |
1,421,082,805 |
1,097,762,100 |
29% |
|
Distribution and selling expenses |
(363,066,026) |
(209,073,921) |
74% |
|
Administrative expenses |
(125,392,790) |
(74,935,770) |
67% |
|
Other operating (expenses)/income |
(687,888,769) |
8,810,115 |
-7908% |
|
Total operating cost |
(1,176,347,585) |
(275,199,576) |
327% |
|
Other income |
194,854,485 |
17,404,732 |
1020% |
|
Finance costs |
(398,997,642) |
(153,717,840) |
160% |
|
Profit before taxation |
40,592,063 |
686,249,416 |
-94% |
|
Taxation |
|
|
– |
|
Current |
(39,707,781) |
(24,303,400) |
63% |
|
Deferred |
(35,066,923) |
(27,232,414) |
29% |
|
|
(74,774,704) |
(51,535,814) |
45% |
|
Profit after taxation |
(34,182,641) |
634,713,602 |
– |
|
Earnings per share – basic and diluted |
(0.03) |
0.98 |
– |
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