Fauji Foods Limited (PSX: FFL) has posted a Rs. 560 million profit for the nine months that ended on September 30, calendar year 2024, compared to a loss of Rs. 108 million in the same period last year.
For 3MFY25, the company’s PAT skyrocketed by 478 percent to Rs. 223 million compared to a profit of Rs. 38.5 million recorded in SPLY.
The company did not announce any bonus shares or cash dividends for the period in review.
According to FFL’s financial results, it registered a net revenue growth of 20 percent to Rs. 17.8 billion during 9MCY24 from Rs. 14.8 billion in 9MCY23. In 3MFY25, revenue clocked in at Rs. 6.4 billion compared to Rs. 4.0 billion in SPLY.
In a brief commentary, FFL explained that Nurpur UHT milk remains the fastest growing Milk brand in Pakistan. It recorded 47 percent revenue growth in the 9 months of 2024 vs SPLY. The strategic acquisition of the cereal business in Feb 2024 helped diversify the portfolio and allowed the business to own the breakfast table.
FFL said the commercial sustainability is reflected through the improved structure of the P&L as Gross Margins increased from 11.9 percent in Q3 2023 to 14.8 percent in Q3 2024, while the 9-month Gross Margin increased by 5% vs SPLY to hit 18%. This was driven by a continued focus on cost efficiencies backed by continuous improvement in the Supply Chain. As a result, FFL achieved a Q3 2024 operating profit of Rs. 236 million vs Rs. 68 million in SPLY.
During the quarter, the finance cost of the company increased by 163 percent to Rs. 15.8 million as compared to Rs. 6 million in the same period last year. In 9MCY24, the same metric saw a decrease of 88 percent to Rs. 40.5 million.
FFL’s marketing and distribution expenses increased by 38 percent to Rs. 456 million in 3MFY25, while the same expenses saw a 24.3 percent increase to Rs. 1.27 billion in January- September 2024.
Administrative expenses jumped to Rs. 262 million during 3MFY25 and Rs. 682 million in 9MCY24. The company’s other income increased to Rs. 174 million in 3MFY25 and from Rs. 189 million to Rs. 366 million in 9MCY24.
FFL reported earnings per share of Rs. 0.22 for the nine months and earnings of Rs. 0.09 per share for 3MFY25.
At the time of filing, the company’s scrip at the bourse was at Rs. 9.34, down by 0.21 percent or Rs. 0.02, with a turnover of 19.9 million shares on Tuesday.