Karachi: United Distributors Pakistan Limited reported its unaudited financial results for the quarter ended September 30, 2024, revealing a substantial increase in net profit despite a challenging economic environment. The results were declared during the board meeting on October 29, 2024, where the directors maintained a consistent shareholder return policy with no changes to dividends or share distribution.
The company's revenue from contracts with customers reached 227.08 million Rupees for September 2024, down from 254.85 million Rupees during the same period last year. Despite the drop in revenue, cost of sales saw a reduction, amounting to 132.36 million Rupees compared to 141.93 million Rupees in 2023, leading to a gross profit of 94.71 million Rupees. Marketing and distribution expenses increased to 67.84 million Rupees, up from 62.60 million Rupees, while administrative expenses rose to 24.27 million Rupees from 17.56 million Rupees.
According to information available from the Pakistan Stock Exchange (PSX), the operating profit for the company stood at 2.16 million Rupees, significantly lower than the 32.26 million Rupees reported last year. However, a sharp increase in other income, which totaled 181.96 million Rupees—up from 43.37 million Rupees—boosted the pre-tax profits to 176.79 million Rupees.
After accounting for final taxes and other levies amounting to 17.75 million Rupees, the profit before income tax was recorded at 159.04 million Rupees. With a taxation provision of 9.43 million Rupees, the profit after tax closed at 149.61 million Rupees, a considerable improvement over the 43.45 million Rupees from the previous year.
Earnings per share also saw a substantial increase, standing at 4.24 Rupees compared to 1.23 Rupees in 2023. Despite these gains, the company recorded a loss on fair value measurement of 719 Rupees, impacting the total comprehensive income, which was reported at 148.89 million Rupees for the period.
United Distributors Pakistan Limited has maintained a stable financial performance, managing to increase its profitability amidst economic pressures, although the decision to withhold dividends reflects a cautious approach to capital management.