Unilever Pakistan Foods Limited (PSX: UPFL) has reported a profit after tax of Rs4.57bn for the nine months ended September 30, 2025, marking a 15.8% decline from Rs5.43bn in the same period last year. The dip was mainly due to lower other income and the maturity of tax credits, though sales showed strong upward momentum.
Earnings per share (EPS) for Unilever Pakistan Foods dropped to Rs717.93 in 9MFY25 compared to Rs852.77 in the previous year, reflecting the impact of lower income from non-core operations. Despite this, the board announced a cash dividend of Rs466 per share for shareholders.
The company’s net sales grew 21.3% year-on-year to Rs30.08bn from Rs24.81bn, supported by robust performance across all product categories, with Knorr Noodles emerging as the top contributor. Cost of sales also climbed 21.9% to Rs18.41bn from Rs15.1bn last year.
Gross profit increased 20.3% to Rs11.68bn from Rs9.71bn in 9MFY24, though the gross margin slightly narrowed to 38.8% from 39.1%, mainly due to higher depreciation from new capital investments. Operating profit came in at Rs7.62bn, down 2.3% from Rs7.80bn in the same period last year.
Distribution, administrative, and other expenses rose 15.7% to Rs4.84bn from Rs4.19bn, while other income saw a sharp 65.5% decline to Rs786.7m from Rs2.28bn. Finance costs increased 3.6 times to Rs79.5m from Rs22.2m in 9MFY24, largely due to rising borrowing costs.
Unilever Pakistan Foods recorded a profit before tax of Rs7.46bn, down 2.8% from Rs7.67bn last year. After accounting for income tax, which decreased 26.7% to Rs2.80bn from Rs3.84bn, the company closed the period with a net profit margin of 15.2%, compared to 21.9% in the prior year.
The decline in Unilever Pakistan Foods’ profitability was driven by a substantial drop in other income and higher finance expenses, offsetting its strong sales growth and stable operational performance.