Friesland Campina Engro Pakistan Limited (FCEPL) announced its financial results for the first quarter that ended on 31st March 2022.
The Company continued to drive cost-efficiencies through multiple cost-saving initiatives, which resulted in FCEPL registering a post-tax profit of Rs. 664 million in Q1, up by 21.40 percent as compared to Rs. 547 million in the same period last year – an improvement of 10bps.
The Company also reported revenue of Rs. 14 billion in the first quarter, showcasing 20.7% growth versus Rs. 11.57 billion last year. The growth was led by improvement in the portfolio mix, coupled with an increase in volumes of both, the Dairy & Beverages and the Frozen Desserts segments.
Earnings per share of the company were increased to Rs. 0.87 from Rs. 0.71.
Dairy and beverages
The Dairy and Beverages segment reported a revenue of Rs. 12.8 billion, registering a 19.5 percent growth year-over-year. The segment’s growth was led by Olper’s as it continued to strengthen its position as the market leader with ongoing brand and trade investments. The segment witnessed significant expansion in the retail footprint and E-Commerce channel during the quarter and will continue to explore new channels and routes to markets to serve its customers effectively and efficiently.
With revenue of Rs. 1.2 billion, the frozen desserts segment reported a growth of 34.1 percent vs the same period last year. Offering a value-added product at an affordable price, the Company launched the O’more Double Choco Chips Cone in 2022 at a price point of Rs. 50, which was well-received in the market and is expected to grow.
The business environment remains fragile as rising inflation and currency devaluation continue to pressure profitability. However, several optimization initiatives are being taken to improve efficiencies and manage inflation.
The company’s purpose is to transform the health and well-being of Pakistanis, now and for generations to come. It has vowed to continue to partner with the Pakistan Dairy Association (PDA) and the Government on various initiatives to educate the consumers on the potential health hazards of loose milk consumption and reinforce the positive characteristics of safe packaged milk.
The business will continue to invest in people, processes, and projects to deliver unparalleled value and superlative quality, driven by innovation and technology.
This will strengthen the company’s brand equity and enable it to be the preferred choice for consumers’ dairy needs and expand its profit accretive portfolio to leverage margins.