Karachi: In a recent financial disclosure, United Brands Limited reported a downturn in revenue and a net operational loss for the fiscal year ended June 30, 2024. The company's revenue decreased by 3% year-over-year, amounting to PKR 2,434.88 million, compared to PKR 2,526.89 million in the previous year.
The Karachi-based distributor of consumer goods attributed the revenue decline to its strategic decision to exit distribution lines for certain brands, which was influenced by import restrictions imposed by the Pakistani government. These restrictions, aimed at conserving foreign exchange reserves, have affected the supply chains for imported brands like Kellogg, Pringles, and Ovaltine, thereby impacting the company’s top-line performance.
Despite these challenges, United Brands Limited managed to mitigate the revenue decline through its wholly owned subsidiary, IBL Logistics Private Limited. The logistics arm reported a 33% increase in service revenue, which rose by PKR 292 million year-over-year, bolstered by new transportation clients and an expansion of distribution routes within the Lahore beverage business.
According to information available from the Pakistan Stock Exchange (PSX), the company’s operational loss stood at PKR 30.08 million, a substantial recovery from a loss of PKR 21.51 million the previous year. The reduced loss is credited to stringent cost control measures and a 31% decrease in finance costs, which reflects the company's efforts in repaying financing facilities and maintaining liquidity.
Despite the adverse conditions, United Brands Limited reported a net loss after taxation of PKR 45.92 million for the year, marking an improvement from the previous year's loss of PKR 101.26 million. The company’s earnings per share also improved, closing the year at a loss of PKR 0.50 per share compared to a loss of PKR 1.10 per share in 2023.
United Brands Limited continues to focus on diversifying its revenue streams and enhancing operational efficiencies to navigate the challenging economic environment. The company remains committed to maintaining its competitive position in the market and improving shareholder value over the coming years.