Unity Foods Reports Robust Profit Growth Amid Slight Revenue Decline

KARACHI: Unity Foods Limited (UNITY) offered insights into its financial performance and future strategy during a corporate briefing held on Thursday. The company reported a profit after tax (PAT) of Rs1.6 billion for the fiscal year 2025, translating into earnings per share (EPS) of Rs1.37, despite a slight dip in revenue.

UNITY’s revenue for the fiscal year totaled Rs77.8 billion, marking a marginal negative growth of 0.8%. However, profitability saw a marked improvement with gross margins increasing from 9% in FY24 to 15% in FY25, attributed to enhanced cost efficiencies.

The company’s revenue mix remains balanced, with Industrial Bulk edible oils, grains, and animal feed ingredients each contributing 32% to the revenue. Sunridge consumer staples made up 20%, consumer packs edible oils accounted for 8%, and the remaining 8% came from other segments.

A significant portion of UNITY’s revenue, 95.5%, is generated from domestic sales, while exports constitute 4.5%. The management emphasized a strategic shift towards export-led growth, having recently entered markets in Singapore and Hong Kong, with plans for further expansion.

Pakistan stands as the fourth-largest importer of edible oils globally, with industry demand growing by 2.4% year-on-year in FY24 and accelerating to 3.4% in FY25. This growth is viewed as a positive trend for UNITY’s edible oil portfolio.

Unity Foods has established itself as the only national staple foods brand in Pakistan with comprehensive distribution coverage across the country. The company operates Sunridge Bakery Outlets on a franchise model and is actively seeking new franchise partnerships, alongside evaluating expansion into additional Pakistani cities.