Unity Foods losses triple to Rs596.6m

Unity Foods Limited (PSX: UNITY) recorded an increase of almost 3x YoY in its losses, with its loss after tax widening to Rs596.58 million [LPS: Rs0.5] compared to a loss of Rs201.7m [LPS: Rs0.17] in the same period last year (SPLY).

Going by the results, the company's sales revenue shrank 45.9% YoY to Rs15.13bn as compared to Rs27.94bn in SPLY.

The cost of sales also fell by 37.1% YoY but was lesser than proportionate to sales decline, which worsened the gross profit by 83.4% YoY to Rs875.19m in Q1 2024.

The gross margins fell significantly to 5.79% as compared to 18.90% in SPLY.

During the period under review, other income also fell by 34.3% YoY to stand at Rs228.77m in Q1 2024 as compared to Rs348.25m in SPLY.

The company’s finance cost rose by 56.3% YoY and stood at Rs1.63bn as compared to Rs1.04bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs58.28m against the Rs904.48m paid in the corresponding period of last year, depicting a fall of 93.6% YoY.