AKD Securities Ltd. organized Pakistan listed Food Manufacturers’ Conference where some of the leading local food manufacturers, namely PREMA, BNL, TOMCL, UNITY and NATF participated and shed light on industry’s and their Company’s outlook over the medium and long term.
The management of all the companies showed concern over the rising prices of global commodities and its likely impact on the local market. In the past, the local food manufacturers have raised their prices in line with food inflation and expect to increase their prices by 8-10% in FY22 to pass on the rising costs to consumers.
Unity Foods Limited :- The Company has depicted a phenomenal growth of 134%YoY in 9MFY21 owing to a growth in volumes. During FY21, the Company confronted major global supply disruptions resulting in higher freights coupled with PKR depreciation; however, the management has been able to pass on the costs, whereas the sales of Sunridge has increased the gross margin from 7.3% in FY20 to 8.2% in 9MFY21.
The management expects the international production of Palm Oil to improve by the end of FY22, therefore, helping the prices to ease. In addition to this, the Company expects higher production of Soybean, Canola and Sunflower oil, expected to subside the inflating prices.
Going forward, the Company is considering making an entry into the rice business through acquisition or by setting up a new rice mill. In addition to this, it plans to enhance its capacity in refinery and fractional plants whereas it intends to become a complete consumer staple company by adding FMCG products its portfolio.
Profile of Unity Foods Limited.
The Company aims to provide food for life. We transform crops into products that serve the vital global needs of the food sector in this ever-growing world. We have diversified our business portfolio to operate in an assorted agro product mix for a global breadbasket, handling various agro commodities to connect them from farm to dining table. Our products include Edible Oil, Industrial Fats and various feed ingredients for poultry and livestock sector. Along with innovation, we provide customized solutions to industries handling food and feed products to help them enhance their performance and profitability.