KARACHI: United Brands Limited (UBL) has reported a return to profitability for the nine months ended March 31, 2026, despite a significant decline in sales, reflecting improved cost management and lower finance costs during the period. The results were announced in the company’s condensed interim financial statements.

According to the consolidated financial results, the company’s revenue from contracts with customers fell sharply to Rs595.88 million during the nine-month period, compared to Rs2.23 billion recorded in the corresponding period last year. The steep decline in sales also reduced gross profit to Rs101.08 million, down from Rs299.67 million a year earlier.

Despite weaker revenue, United Brands posted a profit after tax of Rs16.15 million, compared with a profit of Rs14.73 million in the same period last year. Earnings per share (EPS) improved to Rs0.18, up from Rs0.16 in the corresponding period of 2025.

For the third quarter alone, however, the company reported a net loss of Rs8.72 million, compared with a profit of Rs18.32 million in the same quarter last year, as quarterly revenue dropped to Rs84.66 million from Rs643.79 million.

The company’s operating profit for the nine-month period stood at Rs34.71 million, while finance costs declined substantially to Rs4.83 million, helping support overall profitability despite the challenging business environment. Other income also increased to Rs17.69 million, providing an additional boost to earnings.

On the financial position side, total assets stood at Rs855.66 million as of March 31, 2026, compared with Rs1.41 billion at the end of June 2025. Cash and bank balances amounted to Rs103.34 million, while accumulated losses narrowed to Rs924.86 million, reflecting the period’s positive earnings.

The company’s cash flow also strengthened, with net cash generated from operating activities reaching Rs59.97 million, a notable improvement from Rs1.35 million in the corresponding period last year. Cash and cash equivalents at the end of the period stood at Rs71.25 million.

While the sharp contraction in revenue remains a key challenge for United Brands, the company’s ability to remain profitable through improved financial management and reduced financing costs indicates resilience as it navigates a difficult operating environment.