FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results for the nine months that ended on September 30th, 2022.
The company witnessed a decline in profit after tax of Rs. 194 million vs last year (Rs. 1.765 billion vs Rs. 1.959 billion) on the back of higher finance costs due to an increase in interest rates and higher taxation due to the imposition of Super Tax.
FrieslandCampina Engro Pakistan Limited reported revenue of Rs. 52.8 billion for the nine months ended, showcasing a 37 percent increase versus the same period last year, led by volume growth, mix improvement, and distribution expansion. Operating profit reflected a growth of Rs. 500 million vs last year.
Earnings per share of the company was reported at Rs. 2.3o as compared to Rs. 2.56.
Dairy and beverages
With a growth of 36.4 percent versus last year, the segment reported a revenue of Rs. 46.1 billion. Olper’s led the growth in the segment along with strengthening its market leadership position through consistent brand building and trade activities. A significant expansion was witnessed in the retail footprint and E-Commerce channel during the quarter.
The segment will continue to explore new channels and routes to markets to serve its customers effectively and efficiently.
Leveraging FrieslandCampina’s global expertise to introduce new products and innovations as a key driver of future business growth, the Company recently launched Olper’s Cheese.
The Company’s other products like Olper’s full cream milk powder (FCMP), Olper’s Cream, and Tarang have also gained healthy market shares despite strong competition, according to an official statement released by the FCEPL.
Ice Cream and Frozen Desserts
With a growth of 37.9 percent versus last year, the segment reported a revenue of Rs. 6.8 billion. This growth was enabled by the segment’s investment in season-opening activities and expansion of the trade universe by inducting more assets in the market.
Future outlook
Rising inflation, currency devaluation, and restrictive monetary policies continue to put pressure on the Company’s profitability. Moreover, the imposition of Super Tax will impact the formal sector thus impacting the government’s ability to collect taxes in the long run.
