Unity Foods Rebounds with Rs. 51 mn Profit

Unity Foods Limited (PSX: UNITY) rebounded with a profit after tax of Rs. 51.23 million [EPS: Rs. 0.04] during the quarter ending September 2024.

That compares to a loss of Rs. 280.99m [LPS: Rs. 0.24] in the same period last year (SPLY).

The company's revenue slipped 34.4% to Rs. 12.93bn as compared to Rs. 19.71bn in SPLY.

The cost of sales fell by 36.1% but was higher than proportionate to sales decline, which worsened the gross profit by 22.0% to Rs. 1.83bn in Q1 FY25.

The gross margins improved to 14.1% as compared to 11.9% in SPLY.

During the period under review, other income went up by 7.6% to stand at Rs. 248.55m in Q1 FY25 as compared to Rs. 231m in SPLY.

On the expense side, the company's administrative expenses fell 0.6% from a year ago to Rs. 201.38m, selling and distribution expenses fell 28.5% to Rs. 244.21m, and other operating expenses fell 81.1% to Rs. 2.13m.

The company’s finance cost contracted by 3.3% and stood at Rs. 1.59bn as compared to Rs. 1.65bn in SPLY.

On the tax front, the company received a tax credit worth Rs. 22.52m against an expense paid worth Rs. 431.65m in the corresponding period of last year.