United Distributors Pakistan Limited (PSX: UDPL) is incorporated in Pakistan as a public limited company. The company is engaged in the manufacturing, trading and distribution of pesticides, fertilizers and other allied products.
Pattern of Shareholding
As of June 30, 2025, UDPL has a total of 35.271 million shares outstanding which are held by 1266 shareholders.
Genesis Holdings (Private) Limited, the parent company of UDPL, holds 85.23 percent of its shares followed by local general public holding 6.29 percent shares. Around 4.95 percent of the company’s shares are held by Modarabas & Mutual Funds.
The remaining ownership is distributed among other categories of shareholders.
Financial Performance (2019-24)
Except for a year-on-year decline in 2025, UDPL’s topline followed an uphill journey in all the years under consideration. Conversely, the bottomline didn’t prove to be encouraging. UDPL’s bottomline slid in 2019, yet, stayed in the positive zone. After that, the company registered net losses for four years in a row.
In 2024, the company posted net profit which tremendously strengthened in 2025. UDPL’s margins portray an oscillating pattern over the period under consideration (see the graph of profitability ratios). Net margin is found to be the most erratic one on account of share of profit/loss from associate company, FMC United (Private) Limited. Operating and net margins attained their optimum level in 2025. However, gross margin dwindled in 2025. The detailed performance review of the period under consideration is given below.
In 2019, UDPL’s net sales grew by 19.85 percent year-on-year to clock in at Rs. 540.60 million. This was on account of contribution of new brands, better sales mix and concentrated branding efforts by changing the look and feel of the products.
Cost of sales surged by 21.98 percent year-on-year in 2019 on account of a spike in the price of raw and packaging material due to Pak Rupee depreciation, rising global commodity prices as well as general inflation.
Gross profit improved by 16.85 percent in 2019, however, GP margin ticked down to 40.38 percent from GP margin of 41.42 percent recorded in 2018. Operating expense expanded by 9.20 percent year-on-year in 2019 on the back of increased sales volume, sales territory expansion, inflation and higher amortization expense incurred during the year.
Payroll expense also hiked in 2019 due to an increase in the number of employees from 80 in 2018 to 93 in 2019. Operating profit picked up by 61.95 percent year-on-year in 2019 with OP margin rising up from 6.87 percent in 2018 to 9.28 percent in 2019.
The tables turned for UDPL when its finance cost multiplied by 359.79 percent on account of hefty exchange loss incurred in 2019 due to steep depreciation in the value of local currency. This coupled with 68.21 percent year-on-year decline in the share of profit from associate company translated into 69.74 percent year-on-year plunge in UDPL’s bottomline which stood at Rs.50.37 million in 2019.
EPS dived from Rs.5.43 in 2018 to Rs.1.43 in 2019. NP margin also registered a drastic slump from 36.90 percent in 2018 to 9.32 percent in 2019.
In 2020, UDPL’s net sales registered a decent 19.19 percent year-on-year rise to clock in at Rs.644.32 million. This was despite economic headwinds emanating from the outbreak of COVID-19, locust attack on crops as well as non-seasonal rainfall in 2020. Cost of sales radically hiked by 26.69 percent year-on-year on account of steep depreciation of Pak Rupee.
Gross profit inched up by 8.11 percent in 2020, however, GP margin shrank to 36.63 percent. Operating expense grew by 5.44 percent year-on-year in 2020 due to higher payroll expense, depreciation and amortization as well as commission and incentives.
Lower dividend income from IBL Healthcare Limited in 2020 drove down other income by 32.84 percent.
Operating profit rose by 8 percent year-on-year in 2020, however, OP margin plummeted to 8.41 percent. 58.10 percent reduction in finance cost in 2020 gave some hope, however, hefty share of loss to the tune of Rs. 313.60 million from associate company proved to be disastrous for UDPL’s bottomline which translated into net loss of Rs.223.04 million in 2020. Loss per share clocked in at Rs.6.32 in 2020.
UDPL’s topline registered a negligible 0.36 percent year-on-year growth in 2021 to clock in at Rs.646.63 million. This was on account of curtailed cultivation of cotton crop which is a significant source of revenue for the company. This coupled with the disruption of global supply chain delayed the company’s import shipments and resulted in idle capacity.
Gross profit improved by 5.71 percent year-on-year due to addition of high-margin brands to the company’s sales mix. GP margin progressed to 38.58 percent in 2021. UDPL kept a check on its operating expense which ticked up by only 1.95 percent in 2021. Operating profit improved by 19 percent year-on-year in 2021 with OP margin climbing up to 9.97 percent.
Finance cost tumbled by 34.38 percent year-on-year due to monetary easing. Share of loss from associate company also slipped by 54.54 percent in 2021. This translated into 64.81 percent reduction in net loss for the year which clocked in at Rs.78.48 million in 2021. Loss per share also contracted to Rs.2.22 in 2021.
In 2022, the topline growth was recorded at 1.98 percent. This resulted in net sales of Rs.659.41 million in 2022. Despite deteriorating macroeconomic indicators, the company was able to sustain its net revenue on account of sizeable contribution of fertilizer products and other high margin products in its sales mix.
Gross profit jumped up by 16.53 percent year-on-year in 2022 with GP margin reaching its optimum level of 44.10 percent. Operating expense magnified by 13.96 percent year-on-year in 2022 due to significant escalation in payroll expense as well as freight and vehicle running expense incurred during the year.
Higher provisioning against ECL and exorbitant exchange loss drove up the other expense by 944.91 percent in 2022. However, it was largely offset by 51.58 percent higher other income recognized in 2022 due to gain on the disposal of fixed assets.
Operating profit progressed by 13.80 percent in 2022 with OP margin reaching 11.13 percent – the highest level attained by the company since 2018. Finance cost inched up by 1.86 percent in 2022.
What pushed UDPL’s bottomline into net loss was a substantial 221.86 percent spike in share of loss from associate company. As a consequence, the company posted a huge net loss of Rs.352.41 million in 2022, up 349 percent year-on-year. Loss per share also magnified to Rs.9.99 in 2022
Followed by two years of lackluster sales growth, in 2023, UDPL posted a reasonable 19.11 percent year-on-year rise in its topline which was recorded at Rs.785.45 million. However, the plant operations of UDPL tell another tale.
During 2023, the company’s packaging of powder and granular products radically fell by 43 percent and 9.5 percent respectively to clock in at 450,716 kilograms and 813,324 kilograms respectively. This translated into a reduced capacity utilization of 50 percent of powder product packaging plant and 60.17 percent of granular product packaging plant. UDPL also fills bottles of liquid fertilizers which also slumped to 142,796 liters in 2023, down 1.24 percent year-on-year.
The curtailed operations of UDPL were the result of heavy rainfall and floods during the 1HFY23 as well as import restrictions which hindered the availability of fertilizers. This shows that the topline growth was the result of upward revision in the prices during the year as Pak Rupee extremely dwindled, commodity prices rose and indigenous inflation touched an unparalleled mark in 2023.
However, the company couldn’t pass on the entire effect of cost hike to its consumers, which is evident by 2.61 percent slide in its gross profit in 2023 with GP margin marching down to its 6-year lowest mark of 36 percent.
Operating expense amplified by 40 percent year-on-year in 2023 on account of high payroll expense, legal and professional charges, sales promotion expense as well as vehicle running expense incurred during the year.
Bad debt worth Rs.62 million written off during the year coupled with exchange loss of Rs.15.5 million pushed up UDPL’s other expense by 660.69 percent in 2023. This culminated into operating loss of Rs.98.61 million in 2023. Finance cost further worsened the financial results of UDPL in 2023 as it surged by 179.14 percent.
Share of loss from associate company shrank by 71.61 percent in 2023, however, still stood at a massive Rs.130.25 million further adding to company’s financial woes. UDPL registered the highest ever net loss of Rs.372.53 million in 2023, up 5.71 percent year-on-year. This translated into loss per share of Rs.10.56 in 2023.
In 2024, UDPL’s boasted the highest year-on-year topline growth of 41.51 percent. This resulted in net sales of Rs.1111.47 million in 2024. This was on account of sustainable sales volumes and improved pricing.
During the year, the packaging of granular and liquid products increased by 52.41 percent and 136 percent respectively to clock in at 1,239,556 kilograms and 336,812 liters respectively.
Conversely, packaging of powder products declined by 6.3 percent to clock in at 422,322 kilograms. This was due to lackluster demand of micro fertilizers owing to poor farm economics which in turn was the effect of wheat crisis.
High cost of raw and packaging materials and elevated energy tariff resulted in 37 percent surge in cost of sales. Nevertheless, gross profit strengthened by 49.39 percent in 2024 with GP margin ticking up to 38.1 percent.
Operating expense multiplied by 28 percent in 2024 due to higher payroll expense, corporate expenses, commission & incentives as well as vehicle running charges incurred during the year. The company expanded its workforce from 88 employees in 2023 to 97 employees in 2024.
Other expense fell by 97.37 percent in 2024 owing to high-base effect as the company wrote off bad debts and incurred exchange loss in the previous year. Other income registered a staggering growth of 2819.59 percent in 2024.
This was the result of higher dividend income from the company’s Islamic investments; higher mark-up income paid by Universal Ventures (Private) limited for late payment against the disposal of shares and also because of amortization of non-compete fee.
This represents the amount received from International Brand (Private) limited to refrain competing from it in the business of distribution, marketing and sale of human pharmaceutical products for the period of three years. UDPL recorded operating profit of Rs.465.21 million in 2024 as against operating loss of Rs.98.61 million recorded in the previous year.
OP margin stood at an unprecedented level of 41.86 percent in 2024. Finance cost tapered off by 5.1 percent in 2024 despite high discount rate. This was because the company paid off its short-term borrowings in entirety because of robust liquidity position.
During the year, the company’s share of losses in associate company, FMC United (Private) Limited exceeded the value of its investment in the company. This resulted in value of investment to decline to nil. Hence, no further losses were recognized. In 2024, the company was able to post net profit of Rs.362.47 million with EPS of Rs.10.28 and NP margin of 32.61 percent.
Recent Performance (2025)
In 2025, UDPL’s net sales tumbled by 13.30 percent to clock in at Rs,963.61 million. This was due to adverse weather conditions which resulted in low agricultural output. Low support prices and shift in cropping patterns also wreaked havoc on the demand of crop solution during the year.
Lower commodity prices in the international market also proved to be discouraging for the farmers. During the year, the packaging of granular deteriorated by 56.62 percent to clock in at 537,688 kilograms. The packaging of liquid products also slid by 13.17 percent to clock in at 292,438 liters in 2025.
Conversely, the packaging of powder products grew by 74.29 percent to clock in at 736,065 kilograms in 2025. Gross profit dipped by 19.16 percent in 2025 with GP margin falling down to 35.48 percent. Operating expense escalated by 9.10 percent in 2025 due to inflationary pressure which pushed up the payroll expense.
Moreover, onetime cost associated with the disposal of share of FMC United (Private) Limited shares. Other expense mounted by 1041.58 percent in 2025 due to higher provisioning done for WWF. Other income also improved by 212.68 percent in 2025 to clock in at Rs.1377.48 million. This was primarily due to gain recognized on the disposal of investment in associate (FMC).
Increased amortization of non-compete fee, higher dividend income on short-term investment as well as unrealized gain on short-term investment also contributed in driving up other profit in 2025.
UDPL’s operating profit posted 171 percent growth in 2025 with OP margin attaining its optimum level of 130.87 percent. Finance cost slid by 27.66 percent in 2025 due to monetary easing and better liquidity management.
UDPL posted net profit of Rs.903.35 million in 2025, up 149.22 percent year-on-year. This translated into EPS of Rs.25.61 and NP margin of 93.74 percent in 2025.
Future Outlook
The ease of import restrictions and strengthening of Pak Rupee off-late will prove to be a good omen for UDPL whose sales are highly contingent on imported products. This may also ensure smooth and unhindered operations.
However, rising prices of packaging material, high electricity charges and uncertain weather conditions may weigh down UDPL’s financial performance. Other income which greatly buttressed the company’s financial performance in 2025 on the back of the disposal of investment in associate (FMC) will not be available next year. This necessitates sustainable solutions for improved financial performance in future.