Fauji Foods Reports a Massive Loss of Rs. 5.78 Billion During FY2019

Fauji Foods Limited (FFL), the maker of Dostea and Nurpur milk, announced its financial results for the year ended on December 31, 2019.

The company incurred huge losses of Rs. 5.78 billion, up 103.52% as compared with a loss of Rs. 2.84 billion recorded last year due to lower sales and an increase in finance cost.

During the period, the sales revenue went down by 24.90% to Rs. 5.74 billion as compared with Rs. 7.64 billion recorded last year. This caused the company to post a gross loss of Rs. 678 million versus a gross loss of Rs. 293 million during FY18. However, the cost of sales of the company dropped by 19% to Rs. 6.42 billion.

”The increase in competition in the food segment and decline in market share is creating problems for the company” said Talal Ahmed Khan, a market analyst based in Karachi.

The company has incurred a loss allowance on trade debts of Rs 7.67 million during the period.

However, other income of the company saw an increase of Rs. 98.31 million, up by 451% as compared with Rs. 17.81 million recorded in the previous year. The finance cost saw a massive increase as it soared by 151.7% to Rs. 1.69 billion in 2019 as compared with Rs. 674.79 million in 2018. Other expenses were also up by 118.3% to Rs. 218 million versus Rs. 100 million last year.

The company paid taxes worth Rs. 1.53 billion during the year, while it got a tax credit of Rs 463 million last year. It has reported a loss per share of Rs. 10.96 as compared to a loss per share of Rs. 5.39 in FY2018.

Fauji Group was looking to sell its food operations. However, negotiations with the buyer did not end successfully.

During the year, China’s Inner Mongolia Yili Industrial Group had withdrawn its intention to acquire a majority stake in Fauji Foods Limited as both parties failed to reach an agreement before the deadline.

FFL’s scrip at the bourse was closed at Rs. 13.06, down by 5.98% or Rs. 0.83 with a turnover of 8.7 million shares on Monday.


  • isn’t this organization run by army? if so why such piss poor performance? i mean we are ingrained with the idea army and institutions run by armymen can do no wrong, right! that’s the reason we chose a retired air marshal arshad Malik (who ran not-for-profit/never audited PAF) to run PIA; a for profit institute. isn’t it?

  • Fauji Foods should fire their Distribution Staff as they are the ones responsible for Massive Loss…. Since Nurpur milk has soo much demand but no supply.


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