Fauji Foods Limited (PSX: FFL) has posted a Rs. 103 million profit for the quarter that ended on March 31, 2024, a big turnaround from the loss of Rs. 169.6 million in the same period last year.
This is the 4th consecutive PAT positive quarter, FFL said in a brief commentary today.
The company did not announce any bonus shares or cash dividends for the period in review.
According to FFL’s financial results, it registered net sales of Rs. 5.5 billion, up by 8 percent during 1QCY24 compared to Rs. 5.1 billion in 1QCY23.
Nurpur UHT milk continues to drive growth and remains the fastest growing Milk brand in Pakistan. The successful marketing campaign and Route to Market remain the main drivers. Led by our margin accretive growth strategy, the focus remained on driving value-added portfolio in the dairy and desserts segment.
During 1QCY24, the finance cost of the company shrunk massively by 97 percent to just Rs. 8 million compared to Rs. 299 million in the same period last year.
The commercial sustainability is reflected through the improved structure of the P&L as Gross Margins increased from 12.8 percent in Q1 2023 to 19.5 percent in Q1 2024. This was driven by a continued focus on cost efficiencies backed by continuous improvement in the supply chain.
As a result, FFL achieved Q1 2024 operating profit of Rs. 459 million versus Rs. 127 million in SPLY, an increase of 261 percent. With the commercial strategy delivering results, the EBIDTA, which has been on a growth path, closed at Rs. 509 million in Q1 2024 from an EBITDA of Rs. 253 million, an increase of 101.5 percent over SPLY.
Meanwhile, FFL’s marketing and distribution expenses increased by 24 percent to Rs. 430 million in 1QCY24 compared to Rs. 346 million in SPLY.
FFL reported earnings per share of Rs. 0.04 for the period in review, compared to an LPS of Rs. 0.07 in 1QCY23.
The company said that going forward, the investment in brands and distribution infrastructure as well as high margin Cereals portfolio should continue to fuel the growth and delivery of improved financial performance. Pasta launch later in the year will further strengthen the culinary credentials of the portfolio extending it beyond the breakfast table. “We are confident that FFL, driven by its vision of “Unleashing Pakistan’s promise in everything we touch”, will not only build a successful business but leave a mark on the broader national landscape for times to come,” it said.
At the time of filing, FFL’s scrip at the bourse was Rs. 10.07, down 1.27 percent or Rs. 0.13 with a turnover of 25 million shares on Thursday.
