Fauji Foods Limited (FFL), the company behind Nurpur milk and Dostea, has announced its financial results for the year ended 31st December 2020.
Fauji Foods has posted a loss of Rs. 3.05 billion during 2020, representing a 47.23% decrease as compared to 2019. The company had reported a loss of Rs. 5.78 billion in 2019.
The company managed to regain some of its lost market share by registering a revenue growth of 28.4% in 2020 compared to 2019, despite a tougher business environment with high competition. During the year, the net sales of the company were reported at Rs. 7.37 billion, up by 28.4% as compared to Rs. 5.74 billion in 2019.
During the year, business activity was partially impacted by the breakout of the COVID-19 pandemic and related lockdowns. However, the company made effective efforts to ensure all safety measures, while maintaining their supply chain and meeting consumer demand.
Khurram Schezad, CEO of the financial advisory Alpha Beta Core, while commenting on the results said,
Positive changes were seen in the top management with better internal efficiency. A huge surge in demand in the food sector was seen due to the COVID-19 pandemic, which may have been one of the key reasons for the loss reduction of Fauji Foods.
The cost of revenue was reported at Rs. 7.31 billion as compared to Rs. 6.42 billion. Due to the increase in sales, the company managed to report a gross profit of Rs. 62.26 million from a gross loss of Rs. 678.82 million in 2019.
The overall cost environment remained challenging, with high inflationary levels leading to a high increase in commodity costs over the last 12 months.
However, the recovery in revenue growth was marred by high input costs.
Marketing and distribution expenses decreased by 34.3% to Rs. 854 million as compared to Rs. 1.30 billion. Other income of the company was reported at Rs. 98. 70 million as compared to Rs. 98.31 million in 2019. While other expenses saw an increase of 11% to Rs. 242 million.
The finance cost of the company increased by 3.55% to Rs. 1.75 billion as compared to Rs. 1.69 billion in 2019.
FFL reported a loss per share of Rs. 4.62 as compared with Rs. 10.74.
FFL’s share at the bourse was closed at Rs. 18.95, down by Rs. 0.20 or 1.04%, with a turnover of 18.67 million shares on Monday.