Engro Foods Limited has posted a profit of Rs. 385 million, down by 85% in the first 9 months ended 2017 ,compared to a profit of Rs. 2.59 billion in the same period of previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share stood at Rs. 0.50 in the first nine months ended 2017 compared to earnings per share of Rs. 3.38 in the same period in 2016.
Company’s gross profit decreased by 46% for this period. Engro foods’ profit for the 3rd quarter dropped to 68%. Engro Foods Ltd.’s Net Sales for the period decreased by 20%, amounting to a total of 27.1 billion Rupees during the Quarter ended September, 30th 2017.
The gross margins were down because of the lower volumetric sales and change in tax regime under the Federal budget 2016, which increased the cost of doing business for the UHT Industry.
Net revenues shrank during the outgoing quarter because of the lower volumetric sales of the company’s dairy products. EFOODS is facing a fierce competition from new entrants in tea-whitening category, which has significantly dented the market presence of the company’s flagship tea whitener Tarang, said Topline Securities in their report
Efoods script was trading at Rs. 89.05 despite the loss, up by +2.77% with a turnover of 703100 shares.
EFOODS is engaged in the manufacturing, processing and marketing of dairy products, ice cream and frozen desserts with brands like Olpers, Tarang, Dairy Omung and Omore quickly becoming household names. It also has a dairy farm, which serves as the raw material for its dairy segment.