⚡ Flash Summary

United Brands Limited (UBDL) held a corporate briefing session on November 21, 2025. The presentation highlighted the company’s position within the IBL Group, its operational activities, and its financial performance. UBDL faces challenges in profitability, reporting a loss after tax of PKR 6.412 million in 2025. The company aims to enhance operational efficiency and explore onboarding new principals to improve its financial standing.

📌 Key Takeaways

• 🏭 UBDL is part of the IBL Group, a conglomerate with interests in FMCG, pharmaceuticals, and logistics.
• 🇵🇰 The Pakistani FMCG market is projected to reach $16 billion by 2025, growing at approximately 9% annually.
• 🏢 UBDL’s corporate structure includes International Brands (Pvt.) Limited as its parent company and IBL Logistics as a subsidiary.
• 🚚 The company has a nationwide distribution network with 100 branches and RD network operating under the IBL umbrella.
• 📉 Revenue decreased from PKR 3.28 billion in 2021 to PKR 2.66 billion in 2025.
• 📉 Gross profit decreased from PKR 526.257 million in 2021 to PKR 412.768 million in 2025.
• 🔻 The company faced a loss after tax of PKR 6.412 million in 2025, compared to a profit of PKR 61.840 million in 2021.
• 💰 Finance costs have decreased from PKR 47.121 million in 2021 to PKR 20.427 million in 2025.
• 📉 Shareholders’ equity has decreased significantly, from PKR 108.830 million in 2021 to a deficit of PKR 23.008 million in 2025.
• 💸 Total liabilities increased from PKR 1.34 billion in 2021 to PKR 1.44 billion in 2025.
• 🏢 The company focuses on enhancing operational efficiency and providing comprehensive service to customers.
• 🤝 UBDL plans to explore onboarding new principals after conducting a viability analysis.
• ✅ Borrowings have decreased from PKR 308 million in 2021 to PKR 74 million in 2025.
• 🌐 UBDL’s business activities include import & clearance, primary & secondary transportation and warehousing.
• 🤝 Business partners include Corian, Schick, Equal, Nongshim, Calibur and Future Technologies.

🎯 Investment Thesis

Given the declining financial performance and negative shareholders’ equity, a HOLD recommendation is appropriate. While the company is taking steps to improve operational efficiency and onboard new principals, the current financial instability poses significant risks. A more favorable recommendation would require a turnaround in revenue and profitability. The price target is difficult to determine given the current losses, but a conservative estimate would reflect the low book value and operational challenges. The time horizon for this recommendation is medium-term, pending evidence of a successful turnaround strategy.