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Earnings Report

Unikai Foods

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Unikai Foods P.J.S.C. reported lower Q1 2026 profitability as higher finance costs, operating expenses, and softer margins impacted earnings during the quarter. The Group operates across dairy products, juices, ice cream, and food product manufacturing and distribution across the UAE and Oman.

Management continued focusing on operational efficiency, working capital management, and expansion of production capabilities while maintaining integrated distribution operations across the GCC region.

2. Financial Performance Snapshot

  • Revenue: AED 110.2M

  • Gross profit: AED 33.8M

  • Operating profit: AED 5.89M

  • Finance costs, net: AED 2.87M

  • Profit before tax: AED 4.61M

  • Net profit for the period: AED 4.18M

  • Basic & diluted EPS: AED 0.11

Compared to Q1 2025:

  • Revenue increased from AED 109.0M to AED 110.2M

  • Gross profit declined from AED 35.1M to AED 33.8M

  • Net profit declined from AED 5.78M to AED 4.18M

3. Operational Highlights & Key Metrics

  • Total assets: AED 343.2M

  • Total equity: AED 105.9M

  • Cash & cash equivalents: AED 20.9M

  • Bank balances & cash: AED 29.2M

  • Inventories: AED 60.2M

  • Trade & other receivables: AED 94.7M

  • Investment properties: AED 64.5M

  • Interest-bearing borrowings: AED 114.9M

Geographic revenue contribution:

  • UAE: AED 65.9M

  • Oman: AED 42.2M

  • Other markets: AED 2.0M

Additional highlights:

  • Property, plant & equipment additions reached AED 8.12M during Q1 2026

  • Capital commitments stood at AED 9.27M for expansion projects

  • The Group maintained integrated sales and distribution operations across GCC markets

4. Key Performance Drivers

  • Higher finance costs impacted bottom-line profitability

  • Gross margins declined compared to Q1 2025

  • Continued investments into production capacity and operational infrastructure increased costs

  • Stable revenue performance across UAE and Oman markets supported topline resilience

  • Working capital movements and higher receivables impacted operating cash flow

The Group also recorded:

  • AED 13.4M increase in trade and other receivables

  • AED 23.2M decline in trade and other payables

  • AED 17.8M net cash used in operating activities during the quarter

5. Outlook & Forward Guidance

  • Continued focus on dairy, juice, and ice cream product expansion across GCC markets

  • Ongoing investment into production facilities and cooling tunnel infrastructure

  • Management remains focused on reducing costs and improving operational efficiency

  • The Group continues evaluating the impact of geopolitical and regional economic developments

  • Unikai aims to strengthen revenue growth and profitability through operational optimization and market expansion

Management also noted that regional geopolitical developments and supply chain uncertainties continue contributing to volatility across financial markets and the regional economy.

6. 🧾 Investor Takeaway

Unikai Foods reported lower Q1 2026 profitability despite stable revenue growth, as higher finance costs, margin pressure, and working capital movements impacted earnings during the quarter while the company continued investing into operational expansion and infrastructure upgrades.