Unilever Pakistan Records 55.30% Profit Growth in 9MCY23 Amid Economic Challenges

Unilever Pakistan Records 55.30% Profit Growth in 9MCY23 Amid Economic Challenges

Karachi, October 24, 2023 – Unilever Pakistan Foods Limited has reported a remarkable 55.30% surge in profits for the first nine months of the calendar year 2023.

In a financial statement filed with the Pakistan Stock Exchange (PSX), the company announced an after-tax profit of Rs 7.47 billion for the period ending on September 30, 2023, compared to Rs 4.81 billion for the same period the previous year. This substantial growth in profit represents a testament to the company’s resilience in the face of economic challenges.

The earnings per share (EPS) also saw a notable increase, reaching Rs 1,173.27 during January to September 2023, compared to Rs 755.80 for the same period in the previous year. The board of directors of Unilever Pakistan convened on October 24, 2023, and approved the unaudited financial information for the nine-month period, showcasing the company’s commitment to transparency and compliance.

Unilever Pakistan attributes its robust performance to a sales growth of 33.8%, primarily driven by pricing strategies. While the company faced pressure on its volumes due to sustained double-digit inflation, which eroded consumer purchasing power, it managed to achieve a significant increase in EPS. This was mainly due to gross margin improvements resulting from a combination of pricing initiatives and cost efficiency measures.

In terms of the future outlook, Unilever Pakistan acknowledges that Pakistan’s economic and operating environment remains challenging. Despite the stabilization efforts after the International Monetary Fund (IMF) standby arrangement and administrative measures taken by the government, economic conditions remain demanding. Persistent double-digit inflation continues to impact consumers’ ability to engage in discretionary spending, and structural reforms will be required to achieve long-term stability.

The company anticipates that the current pressure on demand will persist in the near term. Nevertheless, Unilever Pakistan remains dedicated to overcoming these challenges. It aims to provide value for its stakeholders and stay connected to consumers by leveraging the strength of its brand, introducing innovative products, continuously striving to offer value-for-money options, and optimizing cost efficiencies across its value chain.

Unilever Pakistan’s substantial profit growth during these testing times demonstrates the company’s adaptability and its ability to navigate complex economic conditions. The company’s commitment to delivering value and staying connected to consumers, even in challenging times, highlights its resilience and focus on long-term sustainability.

The strong financial performance of Unilever Pakistan underscores the importance of effective pricing strategies, cost efficiency, and a commitment to consumer satisfaction. It also serves as a positive indicator for the broader economic landscape, showcasing that with the right approach and determination, companies can thrive even in challenging times. Unilever Pakistan’s journey serves as an inspiration for other businesses looking to navigate economic uncertainty and achieve sustainable growth.

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