⚡ Flash Summary

Unity Foods Limited’s financial results for the quarter ended September 30, 2025, reveal a mixed performance. The company reported a net profit of PKR 95.973 million, a significant improvement compared to the loss of PKR 141.145 million in the same period last year. However, turnover decreased to PKR 9,348.884 million from PKR 12,925.408 million in 2024. The company declared no cash dividend, bonus shares, or right shares for the quarter. The results suggest improved profitability despite lower revenue, indicating better cost management or operational efficiency.

📌 Key Takeaways

• ✅ Revenue decreased to PKR 9,348.884 million from PKR 12,925.408 million in Q3 2024.
• ⬆️ Net profit stood at PKR 95.973 million, compared to a loss of PKR 141.145 million in Q3 2024.
• 💲 Earnings per share (EPS) is PKR 0.08, improved from a loss of PKR 0.12 in Q3 2024.
• 📉 Gross profit decreased to PKR 1,099.185 million from PKR 1,828.099 million year-over-year.
• 📊 Operating profit decreased to PKR 1,489.144 million from PKR 1,620.970 million year-over-year.
• 🏦 Finance cost decreased to PKR 1,254.854 million from PKR 1,592.261 million year-over-year.
• 🚫 No cash dividend was recommended for the quarter.
• 🚫 No bonus shares were recommended for the quarter.
• 🚫 No right shares were recommended for the quarter.
• 👍 Total assets increased slightly to PKR 83,802.691 million from PKR 83,560.500 million since June 30, 2025.
• 💰 Cash and bank balances decreased to PKR 1,798.189 million from PKR 9,132.874 million since June 30, 2025.
• 🧾 Trade debts increased to PKR 23,285.530 million from PKR 21,722.291 million since June 30, 2025.

🎯 Investment Thesis

Given the mixed performance, a HOLD recommendation is appropriate. The improved profitability is encouraging, but the revenue decline and liquidity concerns warrant caution. A BUY signal could be considered if the company demonstrates consistent revenue growth and improved cash flow management in subsequent quarters. A SELL signal might be warranted if revenue continues to decline and liquidity worsens. Price target will be based on discounted cash flow analysis when more information is available. The time horizon is medium-term (6-12 months) to assess the company’s ability to sustain profitability and improve revenue growth.