Unipack’s Q1 2026 net profits plunge 72.4% as sales slow

EGYPT – Unipack has reported a 72.4 percent year-on-year drop in consolidated net profits to EGP 2.97 million (US$59,200) for Q1 2026, as net sales fell to EGP 376.1 million (US$7.49 million) amid reduced demand in Egypt’s packaging and paper materials sector.

The Egypt-based public shareholding company, which manufactures self-adhesive products and markets paper and packaging materials domestically and internationally, saw its gross profit decline to EGP 61.8 million (US$1.23 million) in Q1 2026 from EGP 76.4 million in Q1 2025. 

Operating profit fell sharply to EGP 35.2 million (US$700,000) compared to EGP 53.9 million in the year-ago period. Cost of sales rose to EGP 314.3 million (US$6.26 million) from EGP 311.1 million, squeezing margins further.

Consolidated and Standalone Financials Both Show Sharp Declines

On a consolidated basis, the company recorded net profits of EGP 2.967 million (US$59,100) in the three months ended 31 March 2026, down from EGP 10.734 million (US$213,800) in Q1 2025. 

Consolidated net sales reached EGP 376.108 million (US$7.49 million), compared to EGP 387.431 million (US$7.72 million) in the same period last year. 

Standalone financials followed the same downward trajectory, with net profits after tax falling to EGP 3.047 million (US$60,700) from EGP 10.705 million (US$213,300). 

Earnings per share on standalone basis dropped to EGP 0.001, versus EGP 0.014 in Q1 2025.

What Declining Financials Mean for Egypt’s Packaging Materials Sector

The results reflect ongoing pressure on Egypt’s packaging industry amid currency devaluation and reduced domestic demand. 

The Egyptian pound traded at EGP 50.18 per US dollar on 16 June 2026, representing a significant weakening from pre-conflict levels of approximately EGP 47.9. 

Companies in the paper and packaging sector face dual challenges of rising input costs and reduced consumer spending, with Unipack’s cost of sales increasing despite lower revenue.

The company has not disclosed plans to address the performance decline.

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