Engro Foods Limited has announced a decline of 84% in its net profit in the year that ended on December 31, 2017. The company recorded a profit of Rs 379 million in the year compared to earnings of Rs 2.38 billion in 2016, according to a company announcement sent to the Pakistan Stock Exchange (PSX) on Friday.
Accordingly, earnings per share fell to Rs 0.49 in 2016 from Rs 3.11 in the preceding year.
Along with the results, the board of directors recommended a final cash dividend of Rs 0.4 per share. This will be paid to the shareholders whose names will appear in the register of members on April 19, 2018.
The revenue saw a shortfall of 46.45% as compared to last year’s revenue due to higher prices on volumes and decline in electricity outages resulting in higher consumption of loose milk.
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Other income was increased by 141.89% to Rs 358.54 million from Rs 148.50 million last year. On the flip side, finance costs increased by 50.57% to Rs 524 million, up from Rs 348 million.
At the time of filing this report, EFOODS script at the exchange was trading at Rs 90.22, up by +2.36% with a turnover of 517,000 shares.
The company continues to struggle on multiple fronts – PFA’s campaign against tea whiteners (labeling requirements) being the most prominent for now.
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Engro Foods Limited manufactures, processes, and sells food products in Pakistan. Its products include dairy products, beverages, ice cream, and frozen desserts.
The company sells its products primarily under the olper’s milk, olper’s lite, olper’s cream, olper’s tarrka, tarang, tarang elaichi, omung dobala, dairy omung, Olper’s, Omore, and Olper’s Lassi brand names. It also owns and operates a dairy farm.
Well this clearly shows that even big giants in Pakistan operate just for profit and their products fail even on Pakistani standards. Shame on them !!!