Unilever Pakistan achieves 87% profit growth despite economic challenges

Unilever Pakistan achieves 87% profit growth despite economic challenges

Unilever Pakistan Foods Limited has achieved a remarkable 87% increase in profit after tax for the quarter ending in March 2023, despite challenging economic conditions.

The company’s net profit rose to Rs3.36 billion during the quarter, compared to Rs1.83 billion during the same period in the previous year. This led to earnings per share of Rs527, up from Rs287.04 in the previous year’s corresponding quarter.

Unilever Pakistan Foods Limited’s financial results showed that the company continued to perform well, achieving broad-based growth of 62.8%, with both the retail and food solutions businesses delivering consistent results. Despite inflationary pressures and a challenging economic environment, the company’s gross margin improved by 193 basis points to 46.0%, while earnings per share grew by 83.56% compared to the same period last year. This was achieved through a combination of competitive pricing, cost absorption, and optimization.

Pakistan’s economic and operating environment is expected to remain challenging, with dwindling foreign exchange reserves, high levels of inflation, unprecedented interest rates, and political uncertainty leading to a slowdown in the economy. This has impacted consumers’ purchasing power, leading to downgrading and down trading. Additionally, businesses may face supply disruptions due to government management of imports to stabilize reserves.

Despite these challenges, Unilever Pakistan Foods Limited is committed to navigating the situation by building resilience across the value chain and leveraging global expertise. The company aims to remain relevant to consumers by delivering value for money propositions while managing profitability through optimal pricing and cost transformation initiatives. The management is confident that the company will continue to deliver competitive, consistent, responsible, and profitable growth, benefiting all stakeholders.