⚡ Flash Summary

Unity Foods Limited’s Annual Report for the year ended June 30, 2025, signals a significant turnaround, with the company achieving a net profit of PKR 1.23 billion compared to a net loss of PKR 2.73 billion in the prior year. This financial recovery is attributed to effective cost management, enhanced operational efficiency, and the disciplined execution of strategic objectives. The easing of inflation and the reduction in the policy rate to 11% also provided relief. The company supports over 170,000 vulnerable families, has environmental efforts that support Net Zero, and supports students through scholarhsips.

📌 Key Takeaways

• ✅ Net profit of PKR 1.23 billion, turning around from a PKR 2.73 billion loss.
• 💰 GDP growth 2.7% in Pakistan for 2025.
• 📉 Policy rate reduced to 11%.
• 🤝 Support for 170,000 vulnerable families through ESG initiatives.
• 🌱 Improved gross margins through efficient procurement.
• ⬇️ 14% reduction in finance costs through better working capital management.
• 📈 Other income rose to PKR 2.66 billion.
• 🏢 Proposed disposal of the Kotri Plant to unlock value.
• 🔒 Commitment to high standards of corporate governance and transparency.
• 🌿 ESG strategy integrates social and environmental responsibility.
• 🧑‍🎓 Investments in SAP S/4HANA and digital tools to enable better decision-making.
• 🌐 Exports to 22+ countries.
• 🤝 Sunridge Taqatwar Pakistan has addressed malnutrition.
• ☀️ Renewable energy expansion and waste management contribute to Net Zero.
• 🤝 Supports students with scholarships and community empowerment.

🎯 Investment Thesis

BUY. Unity Foods’ demonstrates improved financial performance, strong governance, and ESG commitment. The strategic disposal of the Kotri Plant and investments in technology suggest further growth. TP: Rs 1.35