Fauji Foods Limited (FFL), the company behind Nurpur milk, has announced its financial results for the nine months that ended on 30 September for the calendar year (CY) 2022.
The company has posted a loss of Rs. 1.943 billion for January-September CY22, showing a 63.27 percent spike in losses as compared to Rs. 1.19 billion reported in the same period last year (SPLY).
The Assistant Vice President at JS Global, Waqas Ghani, told ProPakistani,
Despite a noticeable 37% sequential increase in sales for the quarter, FFL could only post margins of 3.1% at the gross level due to massive increase in input costs during the period. This led the company to report a loss for the 3rd quarter taking cumulative loss for the nine-month period to Rs. 1.9 billion, a 63% YoY increase.
Conversely, the company managed to regain some of its lost market shares by registering a revenue growth of 20.8 percent to Rs. 8.07 billion during the period from Rs. 6.68 billion in SPLY on the back of an improved distribution network, enhanced procurement, and process advancement.
The cost of revenue was reported at Rs. 7.78 billion as compared to Rs. 5.86 billion. Due to the higher cost of sales, the company’s gross profits dropped by a whopping 65.3 percent to Rs. 282.22 million from Rs. 813.18 million in SPLY.
The revenue drop was worsened by high input costs, volumetric hikes in costs of doing business, and extreme inflation.
The finance cost of the company decreased by 4.97 percent to Rs. 909.28 million as compared to Rs. 956.83 million in the same period last year. Marketing and distribution expenses were increased by 37.5 percent to Rs. 1.029 billion as compared to Rs. 748.287 million.
Moreover, administrative expenses jumped by 20.1 percent to Rs. 322.644 million during the period under review.
The company’s other income increased more than twofold by 104.5 percent to Rs. 137.76 million as compared to Rs. 67.37 million in the same period last year.
FFL reported a loss per share of Rs. 1.23 as compared to Rs. 1.53 in the first nine months of 2021.
For the quarter that ended on September 30, FFL’s losses increased by 59.6 percent to Rs. 690.42 million as compared to Rs. 432.48 million recorded in July-September CY21.
FFL’s scrip at the bourse was closed at Rs. 6.32, up by Rs. 0.01 or 0.16 percent, with a turnover of 1.3 million shares on Monday.
