Karachi December 23, 2021: Wilmar Pakistan Holding Pte. Limited has announced to increase its ownership in Unity Foods Limited from current 7.1 percent to 15.1 percent that will be 114 percent increase in its ownership. Unity Foods Limited has announced that Wilmar will increase its ownership in the company by subscribing 26.1 million right shares allocated to company directors, 32.8 million shares allocated to Unity Wilmar Agro and 14.1 million its own right issue.
Company has also showed its intention to subscribe additional 38.8 million shares from the market that will take total right issue subscription by Wilmar Pakistan Holdings Pte to 111.9 million shares which is almost 56 percent of total right issue. After subscription of right shares company holding in Unity Foods will be at 15.1 percent and combined holding of directors and associates will be at 39.7 percent.
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Unity Foods Premium Right Subscribed 55 Percent Prior To Trading: PSX
Unity has earlier notified to the PSX that certain directors of the Company have subscribed 874 shares at PKR27 per share aggregating to PKR23,598/- and remaining directors and substantial shareholders of the Company have arranged for Wilmar Pakistan Holdings Pte. Ltd to subscribe to 73,054,828 shares at PKR27 per share aggregating to PKR1,972,480,356.
In addition to above, Wilmar Pakistan Holdings Pte. Ltd has also agreed to subscribe additional 38,801,695 shares of PKR27 per shares aggregating to PKR1,047,645,765. Accordingly, out of the total right issue size of 200,000,000 shares of PKR5,400,000,000, subscription amount to the tune of PKR3,020,149,719 has been received prior to commencement of trading of Right letter.
During the quarter, the Company’s unconsolidated topline stood at PKR 16.6 billion which is an impressive growth of over 36.3% over three months ended September 30, 2020. Despite turbulent times, your Company continues to excel and grow and has been successful in achieving a gross profit of PKR 1.2 billion.
However, owing to unprecedented and unpredictable rupee devaluation during the quarter, our bottom-line has been adversely affected by PKR 683.8 million which comprises of PKR 292.7 million realized exchange loss whereas the remaining PKR 391.1 million represents unrealized exchange loss. As a result, the Company has incurred a net loss of PKR 28.7 million for the period.
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Unity Foods Called AGM To Increase Authorized Capital By PKR 2 Billion: PSX
The unrealized loss corresponds to inventory held by the Company at cost having higher Net Realizable Value (NRV) on the balance sheet date. The impact of such losses, till the time of realization, may vary (positively or negatively) in line with exchange rate movement.
Your Company is cognizant of this inherent and exogenous risk and is in discussions with its suppliers and lenders to evaluate potential structures under which its FCY exposure will be limited and resultantly reduce profit volatility owing to exchange fluctuations. During the quarter, Sunridge Foods (Pvt) Ltd., the 100% owned subsidiary of Unity Foods, posted sales of PKR 1.7 billion with gross profit of PKR196 million and a net loss of PKR 5.5 million.
Sales grew over 4 times compared to the quarter ended September 2020 owing largely to rapid expansion of our brand, higher volumes and rising local prices. Sunridge’s selling and distribution expenses have also increased by over 400% largely on account of brand building activities that will have a positive impact on the market share going forward.
The Company is now focusing on consolidating in the markets where it has achieved optimal product penetration. It will continue to build relations with both its suppliers and distributors for smooth and efficient supply chain management, while continuing to increase its market share with respect to consumer packs.
The Company will also continue to develop its client base in the Industrial and Commercial segment from where it can derive steady cashflows. With Covid vaccination program moving forward smoothly in the country, the Company expects HORECA sector to achieve full strength and complement the already supportive demand.
