Unipack reports 63% drop in H1 2025 profits despite higher sales

EGYPT – Universal for Paper and Packaging Materials (Unipack) has posted a sharp decline in first-half 2025 earnings, with consolidated net profits after tax attributable to the holding company tumbling 63.1% year-on-year (YoY) to EGP 11.59 million (US$0.24m)

This is from EGP 31.42 million (US$0.65m) in the same period of 2024, according to the company’s latest financial indicators.

Earnings per share (EPS) followed suit, sliding to EGP 0.015 in H1 2025 compared to EGP 0.041 a year earlier.

This decline came despite a 16.6% increase in net sales, which rose to EGP 768.19 million (US$15.86m) from EGP 658.72 million (US$13.60m) in H1 2024.

On a standalone basis, Unipack’s net profits after tax also weakened, falling to EGP 11.64 million (US$0.24m) from EGP 31.42 million (US$0.65m) a year ago. Non-consolidated EPS dropped to EGP 0.014 versus EGP 0.034 in June 2024.

Analysts note that the steep profit drop, despite higher sales, likely reflects inflationary pressures, elevated financing costs, and currency fluctuations in Egypt, which have squeezed margins across the manufacturing and packaging sector.

The Egyptian pound has faced persistent depreciation since 2022, driving up input costs for companies reliant on imported raw materials such as paper pulp, plastics, and ink.

Energy costs have also played a role, with packaging producers reporting higher electricity and fuel prices that erode profitability.

Similar trends have been observed among peers in Egypt’s packaging industry, which continues to battle rising operational costs alongside tighter consumer spending power.

Unipack, one of Egypt’s key players in paper and packaging solutions, supplies a broad range of carton and paper products to consumer goods companies, including those in the food, beverage, and FMCG sectors.

The company’s performance is often viewed as a barometer of demand trends in Egypt’s manufacturing base.

The wider MENA packaging industry has been experiencing growth, driven by the region’s expanding food processing sector and rising demand for sustainable packaging solutions.

However, Egyptian producers remain exposed to global price swings for raw materials and regional economic instability.

While Unipack’s revenue growth signals resilient demand, profitability pressures may persist through 2025 unless cost pressures ease or the company successfully implements operational efficiencies.

Industry watchers suggest that packaging firms like Unipack may increasingly turn to digitalization, waste reduction, and recycling initiatives to strengthen margins and remain competitive in both domestic and export markets.

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