Unilever Pakistan Foods’ earnings jump 23% to hit Rs9.74bn in 2023

Unilever Pakistan Foods Limited (UPFL), a subsidiary of Conopco Inc. USA, saw its profit-after-tax jump by 23%, clocking in at Rs9.74 billion for the year-ended December 31, 2023.

The company registered a profit of Rs7.95 billion in the same period of the previous year (SPLY), according to the notice sent to the Pakistan Stock Exchange (PSX) on Tuesday.

“The business delivered a broad based growth of 22.2% in 2023, mainly led by pricing,” it said in the notice.

UPFL’s earnings per share (EPS) stood at Rs1,529.68 compared to Rs1,248.41 in SPLY.

The company, which manufactures and sells consumer and commercial food products, saw its sales increased by over 22% to Rs34.59 billion during 2023, compared to Rs28.31 billion recorded in the prior year.

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As a result, UPFL’s gross profit stood at Rs14.81 billion in 2023, showing a significant increase of 24%.

The FMCG firm’s gross margin inched up to 42.8% in 2023, as compared to 42.2% in 2022.

During the period, the company operating expenses clocked in at Rs6.77 billion in 2023, an increase of 40% on a yearly basis.

On the other hand, Unilever’s other income rose to Rs2.44 billion in 2023, as compared to Rs1.38 billion in SPLY.

UPFL’s cost of finance declined to Rs119.5 million in 2023, as compared to Rs139.9 million in SPLY, registering a decrease of nearly 15%.

The company’s profit after tax stood at Rs10.35 billion in 2023, higher than Rs8.37 billion registered in SPLY.

UPFL manufactures and sells consumer and commercial food products under 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.

In its statement, the company said Pakistan’s economic and operating environment is expected to remain challenging due to sustained high levels of inflation and pressure on FX reserves due to upcoming foreign debt servicing.

“This may continue to affect the purchasing power of consumers,” the company projected.