Lahore: Bunnys Ltd. (BNL) revealed a notable revenue increase for the first nine months of the fiscal year 2025, reporting PkR5.5 billion, a 5% rise from the same period last year. The growth was attributed to higher sales volumes despite a 15% drop in product prices. Gross margins improved significantly, reaching 25.8%, aided by reduced flour and oil costs and enhanced operational efficiency.

The company reported earnings of PkR150 million in 9MFY25, a reversal from a loss of PkR106.3 million in the same period last year. In the third quarter, earnings stood at PkR36.8 million, compared to a loss of PkR126.1 million in the year-ago quarter. Bread and buns continue to be a major revenue contributor, accounting for about 70% of total revenue, with the company holding a 30% market share in Punjab.

BNL has launched a new bread production line in Islamabad, which constitutes 25% of its production capacity. This facility is expected to contribute approximately 10% to overall revenue. The company is also revamping its snack distribution model ahead of a nationwide relaunch, anticipating a doubling of sales in this segment over the next two years to PkR100 million.

In line with sustainability efforts, BNL has installed a 200 KVA solar system and plans to increase this capacity to 1MW, aiming to reduce electricity costs by 50%. The company has also begun using biogas fuel, which is 30% cheaper than traditional alternatives.

Management noted that recent floods could lead to increased flour prices, potentially impacting gross margins in the bread and bun segment. Despite these challenges, the company projects a 10% year-on-year revenue growth in the first quarter of FY26, with a target of reaching PkR10 billion in revenue for the full fiscal year 2026.