Ayesha Mudassar

Unilever Pakistan Foods Limited (UPFL), Pakistan’s leading consumer goods company, has posted strong earnings for the first six months of the ongoing calendar year 2023 (6MCY23). The company attributed its success to strategic initiatives, strong brand equity, and effective cost management practices. During the half-year period, Unilever Pakistan’s sales reached Rs18.7 billion, exhibiting a significant year-on-year growth of 44.6% compared to the corresponding period of CY22.

The company also reported a notable growth in gross profit, which amounted to Rs8.2 billion, indicating a 46.3% increase compared to the first six months of 2022. In addition to strong sales and gross profit growth, Unilever Pakistan Foods achieved a substantial boost in its other income, which skyrocketed to Rs1.1 billion, representing an outstanding 291% surge compared to the corresponding period last year, highlighting the successful execution of additional revenue streams and diversification efforts. The company’s profit-before-tax for the half-year period stood at Rs5.5 billion, representing a substantial year-on-year growth of 57.7%.

Moreover, the post-tax profit reached Rs5.1 billion, demonstrating an inspiring growth of 55.2% compared to the corresponding period of the previous calendar year. The rise underscores the company’s consistent profitability and effective tax management strategies. Consequently, the earnings per share (EPS) grew by 55.2% mainly on the back of gross profit improvement driven by a combination of pricing and cost efficiency measures.

Three months summary

Unilever Pakistan earned revenue of Rs8.06 billion in the three months ended June 30, 2023 (3MCY23) compared with Rs6.4 billion over the corresponding period of the previous year, posting growth of 26%. The gross profit during the three months was Rs3.3 billion compared to Rs2.7 billion over the corresponding period of calendar year 2022.

The profit-before-taxation and profit-after-tax also increased during the period under review. Furthermore, UPFL posted earnings per share of Rs287.7.

About the company

Listed on the Pakistan Stock Exchange, the company manufactures and sells consumer and commercial food products under the brand names Rafhan, Knorr, Energile, Glaxose-D and Food Solutions. The company is a subsidiary of Conopco Inc. USA, whereas its ultimate parent company is Unilever PLC, United Kingdom.

Future outlook

Pakistan's economic and operating environment remains challenging. However, the management remains committed to creating long-term value for all stakeholders by leveraging global expertise and staying relevant to the consumers through a sound understanding of their needs, innovations, and new pack price architecture.

Credit: INP-WealthPk