FrieslandCampina Engro Pakistan Ltd Posts Strong Financial Results in Q1

FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results for Q1 2023 with the company profit after tax (PAT) of Rs. 990 million, up 40 percent compared to profit of Rs. 664 million reported in the same quarter of the previous year.

The company said that topline growth was driven by mix improvement, widening of distribution footprint, and volume growth in both, the Dairy-Based Products and the Frozen Desserts segments. The company reported earnings per share of Rs. 1.29 in Q1 2023, up from earnings per share of Rs. 0.87 reported in the same quarter of last year.

The company’s net sales stood at Rs. 22.65 billion in the quarter under review, up 62 percent from net sales of Rs. 13.971 billion reported in the same quarter of the previous year.

The company’s operating profit also jumped by 67 percent to Rs. 1.982 billion in Q1 2023, compared to an operating profit of Rs. 1.184 billion reported in Q1 2022.

Future Outlook

Rising inflation, foreign exchange constraints, currency devaluation, higher finance cost and import constraints continue to put pressure on the Company’s profitability. However, with an agile business model in place, the management is confident that it will be able to drive efficiencies and continue to deliver growth.

The business will continue to invest behind brand equity and expand its profit accretive portfolio to leverage margins. Leveraging its global expertise and 150 years heritage, FCEPL remains committed to the highest standards of hygiene, food safety and sustainability and providing safe, affordable, and nourishing dairy products to millions of Pakistanis, every day.