Karachi: United Brands Limited has reported a 27% increase in revenue for the quarter ending on September 30, 2024, compared to the same period in 2023, attributed largely to the inclusion of new business lines under ISM Enterprises (SJS International) and Nongshim. According to information available from the Pakistan Stock Exchange (PSX), the revenue of the company reached PKR 820.31 million, a significant increase from PKR 647.29 million in the corresponding period last year.
Despite the revenue growth, United Brands' gross profit margin saw a decrease from 14.4% in the previous year to 11.8%. The company reported gross profit figures of PKR 97.02 million, slightly above last year’s PKR 93.68 million, while operating expenses saw a decline, reaching PKR 60.38 million from PKR 71.83 million in 2023. The reduction in operating expenses is attributed to the company’s engagement in a cost-plus model under the new business line, which allows for reimbursable operating expenses.
Finance costs for the quarter stood at PKR 6.02 million, a decrease from PKR 17.21 million in 2023. The company reported a profit after taxation of PKR 10.07 million, recovering from a loss of PKR 6.35 million in the prior year. Earnings per share for the quarter are reported at PKR 0.11, compared to a loss per share of PKR 0.07 in the same quarter last year.
Looking forward, United Brands acknowledged the challenging economic conditions in Pakistan, including rising costs and constrained consumer behavior. These conditions have affected the company’s overall financial performance, influenced by factors such as stock availability, pricing changes, increased taxation on non-essential goods, and rising operational expenses. The company, however, has expressed optimism in its strategic focus on local partnerships to mitigate the effects of reduced import activities. This approach aims to leverage growth opportunities in the consumer and logistics sectors while maintaining shareholder value.
United Brands' Board of Directors has expressed commitment to this strategic focus, which is anticipated to provide sustainable growth amid the evolving economic landscape in Pakistan.